IAM Asset Management Maturity Guide v1.1 FINAL WEB With Fields

Asset Management Maturity
Scale and Guidance

Version 1.1 June 2016
gin &
g
ch ent
ally pend
an
nti xt de ”
nt
nt
t
Co celle
en
ete
are
oc
Developing Optimizing
mp
Aw
nu
x
nte
Inn
“E
Co
co
Initial review Development Optimization

(”gap analysis”) & Integration and innovation
Integrated good practices

in Asset Life Cycle Management
(to independently certifiable standard)
©
Copyright The Institute of Asset Management 2016. All rights reserved. www.theIAM.org
Asset Management Maturity Scale and Guidance Version 1.1 June 2016
The Institute of
Asset Management
About the IAM

The Institute of Asset Management (the IAM) is a Disclaimer
not-for-profit, professional body. We are owned The IAM publishes this document for the benefit of
and controlled by our Members and committed to its members and the public. This document is for
remaining independent from commercial and trade guidance and information only. The IAM and their
associations. We exist to advance the discipline agents, servants or contractors do not accept any
of Asset Management, not only for people and liability for any losses arising under or in connection
organisations involved in the acquisition, operation with this information. This limit on liability applies
and care of physical assets but also for the benefit to all and any claims in contract, tort (including
of the general public. Our priorities are to promote negligence), misrepresentation (excluding
the generation and application of knowledge, fraudulent misrepresentation), breach of statutory
training and good practice and to help individuals duty or otherwise. This limit on liability does not
become demonstrably competent. exclude or restrict liability where prohibited by the
law nor does it supersede the express terms of any
Copyright related agreements.
All copyright and other intellectual property rights
arising in any information contained within this Acknowledgments
document are, unless otherwise stated, owned by This Asset Management Maturity Guide has been
The Institute of Asset Management Ltd or other produced by the Institute of Asset Management
companies in The Institute of Asset Management (IAM) through the significant efforts of many
Ltd group of companies. No part of this publication individuals and organisations. The Institute would
may be reproduced in any material form (including like to thank the following in particular for their
photocopying and restoring in any medium or contributions.
electronic means and whether or not transiently or
incidentally) without the written permission of The
Institute of Asset Management Ltd.
This document is published by the IAM for the

benefit of our Members and the general public.
It can be bought from our shop in PDF or glossy
colour paper print www.theIAM.org/Shop. As
part of our ongoing commitment to continuous
improvement we would welcome response to this
document to technical@theIAM.org.
Maturity Guide Editor SAM+ Team

- John Woodhouse, Chairman of Experts - Project Director: Jerry Holdsworth, AMCL
Panel, IAM - Trevor Taylor, Arup
- Steve Bird, MWH
AM Excellence Team - Mike Dixon, TWPL
- Project Director: John Woodhouse, IAM - Danielle Humphrey, eAsset Management
- Richard Moore, TfL - Peter Jay, TWPL
- Alister Jones, Independent - Mital Mistry, AMCL
- Chris Braham, Southern Water - Michael Niven, AMCL
- Peter Geake, Jacobs - Gordon Scott, NATS
- Kirk Gillett, Wipro - Navil Shetty, Atkins
- Jacqueline Harrison, National Grid - Aled Williams, Independent
- Ben Howat, National Grid
- Peter Jay, TWPL
- Milind Joshi, Network Rail
- Andrew Sharp, AMCL
- Navil Shetty, Atkins
2 © Copyright The Institute of Asset Management 2016. All rights reserved.

The Institute of
Asset Management
Contents
1. Introduction 04
2. Asset Management capability/maturity 04
3. Defining Asset Management maturity 05
3.1. Differences between Asset Management and the Management System 05
3.2. The IAM’s previous maturity scale 06
3.3. Other maturity scales 07
3.4. Development of the new scale 07
4. The Maturity Scale 08
4.1. Asset Management maturity ‘bow tie’ 09
4.2. Use of ‘Integrating’ and ‘Optimizing’ terms 09
4.3. Continual Improvement at Competent & Excellent levels 09
4.4. Context-dependency at higher maturity levels 09
4.5. Criteria for selecting contexts and ‘target zones’ for defining Excellence 11
4.6. Contexts represented in this guidance 12
4.7. Moving targets: updating the definitions of Excellence 12
5. Assessing your organisation’s maturity 13
5.1. Gap analysis and planning to achieve Competent level 13
5.2. IAM Endorsed Assessors 13
5.3. Audits and Certification against ISO 55001 14
5.4. Assessments & improvement planning at higher maturity levels 14
6. Maturity definitions for the Management System and AM Landscape subjects 15
No Asset Management Subject Page No Asset Management Subject Page

Asset Management System 16 20 Fault & Incident Response 56
1 Asset Management Policy 18 21 Asset Decommissioning and Disposal 58
2 Asset Management Strategy & Objectives 20 22 Asset Information Strategy 60
3 Demand Analysis 22 23 Asset Information Management 62
4 Strategic Planning 24 24 Asset Information Systems 64
5 Asset Management Planning 26 25 Data & Information 66
6 Capital Investment Decision-Making 28 26 Procurement & Supply Chain Management 68
7 Operations & Maintenance Decision Making 30 27 Asset Information Leadership 70
8 Life Cycle Value Realisation 32 28 Organisational Structure 72
9 Resourcing Strategy 34 29 Organisational Culture 74
10 Shutdowns & Outage Strategy 36 30 Competence Management 76
11 Technical Standards & Legislation 38 31 Risk Assessment and Management 78
12 Asset Creation & Acquisition 40 32 Contingency Planning & Resilience Analysis 80
13 Systems Engineering 42 33 Sustainable Development 82
14 Configuration Management 44 34 Management of Change 84
15 Maintenance Delivery 46 35 Assets Performance & Health Monitoring 86
16 Reliability Engineering 48 36 Asset Management System Monitoring 88
17 Asset Operations 50 37 Management Review, Audit & Assurance 90
18 Resource Management 52 38 Asset Costing & Valuation 92
19 Shutdown & Outage Management 54 39 Stakeholder Engagement 94
Appendix: Other Maturity Scales 96
© Copyright The Institute of Asset Management 2016. All rights reserved. 3

The Institute of
Asset Management
1. Introduction
This guide is an introduction to the subject of Asset Management maturity and how it can be defined, scaled and recognised. It
contains a generic maturity scale, ranging from Innocence to Excellence, along with definitive attributes and example symptoms you
might expect in each of the 39 subject areas of the Asset Management Landscape.
The material in this guide is the cumulative product of several IAM studies of the subject over the last 12 years, ranging from the scale
developed for the BSI PAS 55 specification to the gap analysis and conformance assessment against ISO 55001 (the Self-Assessment
Methodology, SAM) and the recent Asset Management Excellence project. In all cases these have involved multi-industry collaboration
projects with extensive consultation and peer review within the IAM’s diverse membership.
Nevertheless, this guidance is inevitably a ‘work in progress’. The subject of asset management and, even more so, the characteristics
of adequacy or ‘best’ practice are continually evolving, through process innovations, new technology and learning. There are also
widely different operational environments, constraints, cultures and opportunities in asset management, so what should be recognised
as ‘competent’ or ‘excellent’ needs to consider the context of the organisation and how this changes. Such context-dependencies
have been explored to an initial level in this guide, but we expect many further insights, experiences and refinements to emerge over
the coming months and years.
2. Asset Management capability/maturity
Organisations are increasingly recognising Asset Management as a discipline that has relevance and significant potential for improving
performance. The subject has developed from selective areas of maintenance of physical equipment/infrastructure (or financial services)
to the holistic set of practices and capabilities needed to maximise value obtained from any types of asset over their whole life cycles.
This reflects the practical experience of organisations that address their problems of conflicting objectives, increasing stakeholder
demands, reactive, short-termism habits and departmental ‘silo’ behaviours.
There is, as a result, a converging recognition of what ‘good’ asset management looks like. And this proves to be remarkably
consistent across different industries and for different asset types and environments. Indeed, the development of the BSI PAS 55
specification, and its evolution into the ISO 55000 family of standards, reflect the emerging international agreement about what is
needed to ensure competent, integrated and sustainable asset life cycle management.
This development of consensus and standards also creates a need for a consistent scale of capabilities and maturity, against which
organisations can identify their strengths and improvement opportunities. Such a scale is helpful for diagnosing and prioritising
the development of new capabilities, for benchmarking (even between those managing dissimilar asset portfolios in different
environments) and for demonstrating progress, competency or excellence to stakeholders such as staff, regulators, investors and
customers. It also helps to establish the processes and habits of continual improvement, by providing an objective basis of evidence
across the many dimensions and attributes of asset management.
There are, of course, many capability/maturity models already developed and used for different aspects of business or organisational
activity. In most cases these provide a definitive scale of adequacy or sophistication for specific capabilities, processes or methods.
However asset management is a particularly difficult topic to organise into such discrete boxes to be defined as, for example,
‘adequate’, ‘mature’, ‘competent’ or ‘world class’. The capabilities and maturities in asset management rely, at least as much, in the
coordination, integrations, optimizations and alignments of multiple activities – and in the combined effects and cultural dimensions.
Furthermore, an attribute that is recognised as normal and sufficient in one industrial circumstance might be regarded as inadequate
or immature in another. Risk management processes and rigor, for example, would have very different manifestations in the
management of office buildings or domestic housing compared to those of an airline or nuclear installation. Asset management has
an important principle of ‘proportionality’ or fitness-for-purpose, so any objective definitions of capability and maturity must recognise
context and what is appropriate, possible or worthwhile in such environments.

The Institute of
Asset Management
3. Defining Asset Management maturity
3.1. Differences between Asset Management and the Management System
One of the issues that is often confused when talking about Asset Management maturity is whether we are talking about the maturity
of an organisation’s Asset Management System, or the maturity of its overall Asset Management capabilities and performance. In
order to explore this, it is important to understand the distinction between the Asset Management System and the discipline of Asset
Management.
ISO 55001 defines the requirements for a management system for Asset Management. This is the combination of specific interacting
elements that provide direction, alignment, coordination, control and continual improvement in the effective management of assets. In
other words it is a set of components whose combined effect will deliver performance and assurance of ‘competent’ asset management
practices. This does not cover all aspects of the discipline of asset management, however. It only considers the ‘must do’ items, without
addressing the ‘should do’ or ‘could do’ elements. Nor does it address the appropriateness or degree of refinement in methods
employed, or the potential for exceeding the minimum requirements. The management system must therefore be considered as a
subset of the whole subject of asset management, as illustrated in Figure 1 (from ISO55000’s introductory Overview and Principles).
Managing the Coordinated activity of an

organisation organisation to realise
value from assets
Asset Management
Set of interrelated or
interacting elements to
Asset Management establish AM policy, AM
System objectives and processes to
achieve those objectives
Assets that are within the

Asset Portfolio scope of the asset
management system
ISO 55000 states in 2.4.3, describing the diagram above, that:

‘An Asset Management system is used to direct, coordinate and control Asset Management activities. It provides improved risk control
and assures the achievement of Asset Management objectives on a consistent basis. However, not all Asset Management activities
can be formalised through an Asset Management system; for example, aspects such as leadership, culture, motivation, etc are not
managed through the Asset Management system, but they can have a significant influence on the achievement of Asset Management
objectives.’
Additionally, ISO 55002 states in 4.4 that:

‘It should be noted however, that compliance with all the requirements of ISO 55001 represents achieving the minimum standard for
an effective Asset Management system and should not be seen as the final goal.’
The IAM has been working with the Global Forum on Maintenance and Asset Management (GFMAM) to develop a description of the
wider discipline of Asset Management with international consensus. This has resulted in a defined “Asset Management Landscape”,
comprising 39 subject areas as shown below.

The Institute of
Asset Management
Asset Management Strategy & Planning Asset Knowledge Enablers

1 Asset Management Policy 22 Asset Information Strategy
2 Asset Management Strategy & Objectives 23 Asset Information Management
3 Demand Analysis 24 Asset Information Systems
4 Strategic Planning 25 Data & Information
5 Asset Management Planning Organisation & People Enablers
Asset Management Decision-making 26 Procurement & Supply Chain Management
6 Capital Investment Decision-Making 27 Asset Management Leadership
7 Operations & Maintenance Decision-Making 28 Organisational Structure
8 Life Cycle Value Realisation 29 Organisational Culture
9 Resourcing Strategy 30 Competence Management
10 Shutdowns & Outage Strategy Risk, Review & Continual Improvement
Life Cycle Delivery Activities 31 Risk Assessment and Management
11 Technical Standards & Legislation 32 Contingency Planning & Resilience Analysis
12 Asset Creation & Acquisition 33 Sustainable Development
13 Systems Engineering 34 Management of Change
14 Configuration Management 35 Assets Performance & Health Monitoring
15 Maintenance Delivery 36 Asset Management System Monitoring
16 Reliablility Engineering 37 Management Review, Audit & Assurance
17 Asset Operations 38 Asset Costing & Valuation
18 Resource Management 39 Stakeholder Engagement
19 Shutdown & Outage Management
20 Fault & Incident Response
21 Asset Decommissioning and Disposal
The IAM has also published an explanatory document “Asset Management – an Anatomy” to provide explanation of the overall
discipline and the scopes covered within the 39 subjects. In developing a maturity scale and guidance for asset management,
we have therefore addressed both the
• Maturity of the management system (conformance with ISO 55001 representing a ‘Competent’ level of maturity)
• Maturity of an organisation’s asset management (the wider discipline, covering all 39 subjects)
3.2. The IAM’s previous maturity scale
The first IAM maturity scale to be published was the PAS 55 Assessment Methodology (PAM) maturity scale which has five maturity states
(0-4) as shown below. This scale was produced specifically to support the assessment of organisations against the requirements of PAS 55,
and this is reflected in the wording of the scale. Level 3 corresponding to conformance with the requirements of the standard, representing
‘Competence’. Any further refinement was simply classified as ‘Beyond PAS 55’. This was recognised at the time as an interim solution
– insofar as organisations with an adequate management system in place would wish to identify where, and to what extent, further
improvements would be available or desirable. The concept of ‘excellence’ in asset management needed to be explored – organisations
would be seeking guidance about what is possible, in what circumstances, and what would be realistic, achievable and worthwhile?
Optimising and
Learning Applying Embedding Beyond PAS 55
integrating
Awareness Development Competence Excellence
Maturity Level 0 Maturity Level 1 Maturity Level 2 Maturity Level 3 Maturity Level 4
The elements required by The organisation has a The organisation has a All elements of PAS 55 Using processes and
PAS 55 are not in place. basic understanding of good understanding of are in place and are approaches that go
The organisation is in the the requirements of PAS PAS 55. It has decided being applied and are beyond the requirements
process of developing an 55. It is in the process how the elements of PAS integrated. Only minor of PAS 55. Pushing
understanding of PAS 55. of deciding how the 55 will be applied and inconsistencies may exist. the boundares of
elements of PAS 55 work is progressing on Asset Management
will be applied and has implementation. development to develop
started to apply them. new concepts and ideas.

The Institute of
Asset Management
3.3. Other maturity scales
Other existing maturity scales were also reviewed in developing the new IAM guidance. Three observations about these scales are:
• The scales are typically composed of four to six levels – most commonly five.
• Terminologies differ, although there are themes. ‘Optimising’ is generally a feature of higher levels of maturity, with ‘Initial’ or
‘Aware’ the lowest levels. The mid states generally describe the establishment of ‘Repeatable’, ‘Defined’ and then ‘Managed’
processes.
• Where the ‘Optimising’ level is explained in more detail, it is usually associated with the demonstration of continual improvement
and process optimisation, but not necessarily the achievement of best practice or innovation.
3.4. Development of the new scale
A revised maturity scale and terminology has been developed for the purpose of defining capability/maturity of either a management
system or the wider competencies in asset management. This incorporates the experience of the earlier IAM PAM scaling, the review
of other capability/maturity models, the need for application to both management systems and the wider subject, and the diversity of
organisational contexts in which it will be applied. Key features of this defined scale are:
• The scale is expanded to a 6 maturity levels (0-5 range) – this aligns with the wider range of scopes in other maturity scales and
provides a ‘0’ state that represents total innocence or absence of capability in a subject area.
• Some maturity levels are recognisable ‘states’ (‘Innocent’, ‘Aware’, ‘Competent’, ‘Excellent’) that can be regarded as milestones
or testable criteria for adequacy and achievement. Between these states there are two ‘transition’ bands whose recognisable
characteristics are the evidence of developments in progress (rather than evidence of completion or adequacy). The transition bands
are Level 2 ‘Developing’, and Level 4 ‘Optimising’. This is an innovative feature of the maturity scale, compared to others we have
investigated, but we believe it will improve the practicality and usefulness of the scale.
• Compliance with ISO 55001 is equivalent to achievement of the Level 3 (Competent) state. Competency in subject areas that are
not covered by the management system have been calibrated to correspond to the capability/maturity that would be expected in an
organisation that is capable of meeting ISO 55001 requirements for its management system elements.
• The maturity levels up to Level 3 (Competent) are defined irrespective of organisational context or the assets being managed. This
aligns with the principle that Level 3 represents requirements for any competent organisation managing its assets (whatever they
are) in an integrated manner, seeking whole life cycle value.
• However the definitions and observable characteristics beyond this Competent state (i.e. Level 4 Optimising and Level 5 Excellent)
are recognised necessarily to be context-dependent and temporary (the leading edge attributes of Excellence are a continually
moving target as innovation and best practices evolve). This conditional and dynamic state is discussed in detail in this document
and is another area of innovation in the field of maturity scales; it is intended to help organisations to calibrate their aspirations
and ‘stretch targets’ by understanding what is appropriate and achievable currently in their circumstances.

The Institute of
Asset Management
4. The Maturity Scale
Scale Description Definition Maturity characteristics

0 Innocent The organisation has not recognised the need for
this requirement and/or there is no evidence of
commitment to put it in place.
1 Aware The organisation has identified the need for this Proposals are under development and some
requirement, and there is evidence of intent to requirements may be in place.
progress it. Processes are poorly controlled, reactive and
performance is unpredictable.
2 Developing The organisation has identified the means of Notes: this is a ‘transition state’
systematically and consistently achieving the Processes are planned, documented (where
requirements, and can demonstrate that these are necessary), applied and controlled at a local level or
being progressed with credible and resourced plans within functional departments; often in a reactive
in place. mode but could achieve expected results on a
repeatable basis. The processes are insufficiently
integrated, with limited consistency or coordination
across the organisation.
3 Competent The organisation can demonstrate that it This involves a formal documented Asset
systematically and consistently achieves relevant Management system embedded within the
requirements set out in ISO 55001. organisation. The performance of the Asset
Management system elements is measured,
reviewed and continually improved to achieve
the Asset Management objectives.
4 Optimizing The organisation can demonstrate that it is Notes: this is 2nd ‘transition state’. Characteristics
systematically and consistently optimizing its of being in this stage will include:
Asset Management practice, in line with the
organisation’s objectives and operating context.
5 Excellent The organisation can demonstrate that it employs This is a dynamic and context-sensitive state,
the leading practices, and achieves maximum value so the evidence must include demonstration of
from the management of its assets, in line with the awareness of benchmarking positions against
organisation’s objectives and operating context. similar best in class organisations and that, in
both Asset Management practices, and Asset
Management results (value realisation) there are no
known improvements that have not already been
implemented.

The Institute of
Asset Management
gi n &
g
ch ent
ally pend
an
nti xt de ”
nt
t
te n
t
Co celle
en
are
e
oc
Developing Optimizing
mp
Aw
nu
x
nte
Inn
“E
Co
co
Initial review Development Optimization
(”gap analysis”) & Integration and innovation
Integrated good practices in Asset Life Cycle Management

(to independently certifiable standard)
4.1. Asset Management maturity ‘bow tie’

The IAM has also developed an illustration of the maturity scale in the form of a ‘bow tie’ as shown in the diagram below. This
bow-tie recognises that organisations begin implementing Asset Management through a process of alignment and integration which
converges to a level of competence that is recognisable as good practice, whatever the assets or organisational context. The central
state of being Competent therefore corresponds to the coordinated, integrated, aligned and ‘life cycle managed’ level of maturity.
The right hand part of the bow-tie then expands to acknowledge that organisations necessarily diverge in defining their further target
levels of ‘best appropriate practice’, with different (context-dependent) degrees of worthwhile sophistication and optimisation.
4.2. Use of ‘Integrating’ and ‘Optimising’ terms

In developing the maturity scale, much debate occurred around the appropriate usage and expectations for ‘integrating’ and ‘optimising’ within
asset management (and within the management system). The conclusion was that the maturity of an organisation requires degrees of both
throughout the scale but the earlier priorities (e.g. Levels 1-3) are dominated by the need to integrate, whereas the ongoing refinements (Levels 4
and 5) are where optimisation becomes the focus (from a solid platform of integrated competency). In other words, organisations first have to get
into coordinated control, and can then fine-tune and optimise their activities. The proposed maturity scale therefore uses ‘integration’ language
mostly in the ‘Developing’ stage, and reserves ‘optimisation’ for the higher Level 4 & 5 stages (i.e. beyond merely ‘Competent’). This does not,
however, mean that capabilities and activities of optimisation are completely missing from earlier stages of maturity. Even in the basic stages of
alignment and integration it is necessary to recognise and resolve conflicting cost, risk and performance objectives and make decisions about
short-term versus long term impacts (ISO 55001 explicitly requires such processes to be part of asset management planning and decision-making).
Similarly, there are clearly further opportunities for tighter integration at higher maturity levels - not just to the level required to be ‘Competent’.
4.3. Continual Improvement at Competent & Excellent levels

Another important consideration that was explored at length in the development of this maturity guidance was the role of continual
improvement. This is certainly a feature of a Level 3 Competent stage of maturity – the organisation should be monitoring, learning and
improving as part of normal activities and the asset management system. It is a specific requirement of ISO 55001. However there are
also different degrees of maturity and refinement in continual improvement processes. ISO 55001 only requires that such processes exist
(in monitoring of assets, of asset management activities and of the asset management system as a whole). More mature organisations
may have a more integrated, optimised and sophisticated approach to such learning. This could be manifest, for example, as a cultural
level of embedded behaviour and values: in addition to formal processes, there might be a widespread and natural staff engagement
in seeking improvement opportunities, innovation and continual improvement. Recognition of achievement of maturity Levels 4 or 5
would require evidence of such refinement over and above that expected already at the level of Competency (Level 3).
4.4. Context-dependency at higher maturity levels

All the capability maturity scales considered so far have been absolute scales, applied in a universal way to all environments and
organisation types. They assume that Excellence is a defined end-state with attributes that all organisations could and should aspire

The Institute of
Asset Management
to. In asset management, however, it has been recognised that the features that would be regarded as Excellent in one sector
or circumstance may not be that same as those applicable or desirable in another. For example, the widely different assets being
managed within different regulatory and commercial environments mean that sophisticated Asset Management practices justifiable
and appropriate for one organisation might have little or no value to another. Excellence in a consumer goods manufacturing site,
for example, would be different to excellence in a geographically dispersed and highly system-interconnected rail network.
On the other hand, it is not a case of ‘every organisation has its own unique circumstances, so Excellence is entirely personal’. The
core attributes associated with leading edge, innovative and outstanding performance are likely to be universal, but the methods and
applications will differ with circumstance. In other words the importance and justifiable sophistication of different Asset Management
activities will be, at least in part, context-dependent. For example, the asset information requirements, the depth and methods of risk
analysis, the scale and efforts worthwhile in strategic planning and audit rigour suitable for a high street shop are very different to
those required and justifiable for a highly interconnected electricity transmission grid.
The IAM Asset Management Maturity Group has identified 3 primary characteristics of organisational context that have a particular
effect on what is achievable and worthwhile in Asset Management, and therefore shape what should be seen as ‘Excellent’. The three
dimensions are:
1. Asset Systems Criticality (importance of managing the assets optimally)

All organisations have assets and asset systems of different criticalities, but the scales involved vary widely between, say, a nuclear
plant and a truck fleet operator. So the criticality of primary asset systems can be used to define worthwhile Asset Management
practices and ‘excellence’ expectations. Of course all organisations also have a range of assets and asset systems of differing criticality
within their portfolio, so the criterion needs to focus on ‘core systems’, which will normally correspond to highest end of the criticality
scale within their portfolio.
2. Scale and Complexity of Assets Portfolio (difficulty of managing the assets optimally)
Large portfolios of diverse, geographically distributed and interdependent/networked assets generate big information management
challenges, human resource challenges (especially cross-functional collaboration) and particular optimisation opportunities. Small
portfolios of discrete, largely similar units can only justify much lesser sophistication and complexity of their management. So asset
register size, its diversity of content, and the interconnectedness of the assets within systems all affect what ‘excellence’ represents.
3. Volatility of Business Environment (constraints/opportunities to manage assets optimally over their whole life cycle)
One further dimension that needs to be considered is the business environment in which the organisation operates. This can constrain
or enable ‘optimisation’ and the available options for value realization. A telecommunications manufacturing company, for example,
has a very high technology turnover, so asset life cycles are short and the scope for within-life optimisation of operation, maintenance,
spares etc. is limited. Planning is dominated by research and development, and agility in managing the supply chain, competition and
customer expectations. Long-life assets, in highly regulated public utilities, on the other hand, represent quite different challenges and
optimisations – and ‘Excellence’ in Asset Management practices differ accordingly.
These three dimensions will enable organisations to identify their ‘target

zone’ of best practices for Asset Management. They potentially generate
quite a large number of combined circumstances (if each had 3 different
Asset systems criticality
options, 3 x 3 x 3 = 27 potential ‘target zones’ for asset management

Excellence). However the maturity group has chosen to simplify this down
a bit – classifying the ‘Volatility of Business Environment’ into just 2
options (effectively ‘high’ and ‘low’) so, once this choice has been made,
the target zones for Asset Systems Criticality and for Scope and
Complexity of Asset Portfolio represent a 3 x 3 matrix in which to
identify the suitable ‘excellent’ Asset Management practices.
The full 2 x 3 x 3 structure forms a framework for selecting the upper Asset portfolio volume & complexity
levels of capability/maturity definitions suitable to any organisation, and
for identifying relevant material in the IAM’s guidance material and
Knowledge Centre.

The Institute of
Asset Management
4.5. Criteria for selecting contexts and ‘target zones’ for defining Excellence
The following guidance has been developed to help you select the most applicable context for your organisation, using the 3
dimensions described above.
Step 1: select which Volatility of Business Environment is most recognisable:

A. Highly regulated, long-life infrastructure with stable demand forecasts
B. Market/commercial operations with technology or demand volatility and diverse asset lifespans.
Step 2: select the best-fit combination of
Asset Systems Criticality – represented by the consequences of failure of ‘core functional systems’, in a similar way to that used
in most corporate risk matrices:
a. High – multiple loss of life or consequence threatens business viability
b. Medium – loss of life, major environmental damage or >$10m loss
c. Low – loss of life unlikely, financial loss < $10m
Scale and Complexity of Assets Portfolio – using the size of the asset register (number of discrete items), diversity of assets
and factored by their degree of interconnectedness:
i. High – Networked, highly interdependent systems of very large and diverse asset numbers
ii. Medium – Complex, discrete location, functional systems
iii. Low – Independent assets, also in low volumes but maybe diverse asset types
Examples of how typical industries might select their appropriate ambitions and definitions of Excellence are shown below (the yellow and
blue coloured cells represent the first cases used to develop ‘Excellence’ definitions and illustrations in this guidance – see Section 6).
A) LOW volatility in business environment

[Cells in top right corner represent the environments explored for this Maturity Guide]
Business Impact or Asset System Criticality

Low Medium High
Primary Highways National Rail

Networked, highly Secondary/local roads
Electrical distribution HV Electrical Transmission
interdependent system systems
Asset Portfolio Scale & Complexity
Water networks Gas Distribution
Airports
Hospitals
Drinking Water Treatment
Waste Water Treatment
Complex, discrete Waterways Petrochem Process
Electricity Distribution
location, functional Local Authority Schools Oil & Gas Production
Train Fleets
systems Facilities Management Mining
Flood Defence
Steelworks
Ports
Fossil fuel Power gen
Wind Farm
Discrete location,
Bridge PFI Hydro Power Generation Nuclear Generation
independent functional
Vehicle Fleet CHP (Waste to Energy) Airplane fleet
systems
Car Parks

The Institute of
Asset Management
B) HIGH volatility in business environment
Business Impact or Asset System Criticality

Low Medium High
Networked, highly Vehicle Manufacture Mobile Phone Network

General Manufacuring
interdependent system Telecoms wired network Fibre-optic Network
Asset Portfolio Scale & Complexity
Mobile Phone / IT
Complex, discrete Retail Satellite Communications
Manufacturing
location, functional Hotels & Leisure IP Service Provider
Food & Beaverage
systems National Freight / Logistics Pharmaceutical manuf.
Processing
Discrete location, IT Leasing

independent functional Car Hire Data Farm
systems ‘Car Club’
4.6. Contexts represented in this guidance
The definitions of maturity Levels 4 & 5 in this guidance have been developed by teams with a specific focus on two organisational
contexts (coloured yellow and blue in the ‘low volatility’ grid in shown in section 4.5 above):
1. High portfolio volume/complexity, High asset system criticality and low business environment volatility (e.g. large, highly
interconnected networks of rail, gas, electricity etc.).
2. Medium portfolio volume/complexity, high system criticality and low business environment volatility (e.g. large discrete production,
process or manufacturing sites such as non-nuclear power stations, pharmaceutical, food & beverage, chemicals or refining plants).
In this development, the two contexts have revealed quite similar definitive features of Excellence – any differences have emerged
mostly as examples of the methods used. So this IAM Maturity guidance has split the Level 5 Excellence definitions into two parts: a)
the definitive features of such leading edge capability or maturity (irrespective of context), and b) the ‘Exemplars’ that might be found
in such organisations, which may differ according to industry sector or context. As further contexts are explored, it is anticipated that
conditional (context-dependent) elements will be added to the definitions and corresponding or alternative examples of best practice
will be added or substituted into the Exemplars.
4.7. Moving targets: updating the definitions of Excellence
It is recognised that the definitions of Excellence in Asset Management will change as innovations and improvements are developed
(within different organisational contexts). The IAM is intending to establish a ‘crowd sourcing’ mechanism to capture suggestions
and refinements, classified by their context and reviewed by relevant subject matter experts for updating and incorporating into the
maturity guidance (Definitions or Exemplars as appropriate).

The Institute of
Asset Management
5. Assessing your organisation’s maturity
5.1. Gap analysis and planning to achieve Competent level
The IAM has developed a Self-Assessment Methodology (SAM) to provide basic assistance in maturity profiling and ‘gap analysis’ for
organisations in the earlier stages of development (e.g. seeking to achieve the Competent level, or obtain certification against an asset
management standard). SAM offers three sets of profiling criteria:
• PAS 55-1:2008 requirements for optimal management of physical assets

• ISO 55001:2014 requirements for an asset management system
• GFMAM Asset Management Landscape (maturity in the 39 subject areas).
These offer assessment scales up to Level 3 (Competent) only, since they represent compliance with the relevant standards and the
‘convergent’ stages of the maturity scale (see Maturity Bow-tie, section 4.1). Assessment of higher levels of maturity requires deeper
knowledge of the subjects and context of the organisation, and is discussed in the next section.
Example inputs and results from IAM SAM tool
For more details of the SAM tool, which is free to IAM members, please visit www.theIAM.org/SAM
5.2. IAM Endorsed Assessors
In many cases, internal self-assessment of Asset Management maturity may not be adequately objective and systematic. External,
independent assessments can be valuable sources of insight and realism. There are, of course, many consulting and service
organisations capable of providing assessments and gap analyses. However their experience and assessment processes vary widely.
This is why the IAM has developed an Endorsed Assessor scheme. Under this scheme, competent assessors are themselves assessed
for rigour of their assessment process, the experience and knowledge of the individuals performing assessments, and monitoring of
feedback from clients who have been assessed. IAM Endorsed Assessors also commit to a code of practice that requires impartiality
of observations and recommendations.
For an up-to-date list of IAM Endorsed Assessors, visit www.theIAM/EA

The Institute of
Asset Management
5.3. Audits and Certification against ISO 55001
The verification of achieving Competent status (level 3) for your asset management system is best performed by an independent,
experienced assessor. An audit for certification purposes against the ISO 55001 requirements is subject to strict rules for objectivity,
process rigour and subject matter knowledge of auditor. Certifying bodies need to be endorsed for auditing against ISO 55001 by
their national accreditation authority (e.g. UKAS in the United Kingdom). Such accredited certifying bodies are then subject to ISO
17021 “Requirements for bodies providing audit and certification of management systems”. To avoid conflicts of interest, for example,
accredited certifying auditors are not permitted to provide any consultancy or recommendations about how to close any gaps or non-
conformances that are observed. Nor can such certifying bodies be linked to a provider of advisory or consulting services.
Some non-accredited assessors or auditors offer assessment and certification, and may also provide consulting or advisory services.
These organisations are not be subject to the same competency and objectivity standards, so extra care needs to be taken to establish
their subject matter knowledge, process rigour, track record and management of any conflicting interests. The IAM Endorsed Assessor
scheme provides some assurance of this.
Individual assessors or auditors must also each have adequate subject matter knowledge to recognise adequacy and competence in
the management system. This requirement is specified in ISO 17021 Part 5 “Competence requirements for auditing and certification
of asset management systems” and the definition of adequate knowledge is provided in the GFMAM “Competence requirements for
auditing and certification of asset management systems” (you can download this from www.GFMAM.org).
Certification of conformance with ISO 55001 is normally given for a 3-year period, with annual surveillance obligations.
5.4. Assessments & improvement planning at higher maturity levels
For organisations that have already reached the Competent level of maturity, and have a management system in place that would
meet all of the ISO 55001 requirements (whether or not this has been certified), it is recommended that further maturity assessments
are only performed by very experienced assessors who can recognise the fitness-for-purpose, proportionality and context-dependent
opportunities for further advancement.
The IAM has been working with the Global Forum on Maintenance and Asset Management (GFMAM) on a position paper on Asset
Management maturity that defines the key principles of maturity. One of these principles is:
‘Moving through the lower maturity bands can be characterised as becoming more process-aligned, disciplined and integrated.
The degree to which this is achieved can therefore be assessed in terms of conformance with management system requirements
such as ISO 55001: moving through the high maturity bands will be assessed using more holistic, proportionate and ‘behavioural’
characteristics’
It is therefore important to recognise that this document does not constitute a ‘check-list’ for assessing Asset Management maturity
at higher levels. Different techniques will be required to assess these higher levels of maturity that will require greater focus on the
cultural and behavioural characteristics of an organisation. Assessors will need to understand what ‘Excellence’ would represent and
the additional capabilities that might be appropriate and achievable for a particular organisation in its particular context. The IAM is
currently developing guidelines for assessment of high levels of maturity including the extension of the Endorsed Assessor Scheme to
include a category for these higher levels of maturity.

The Institute of
Asset Management
6. Maturity definitions
The following pages provide definitions of maturity for the overall Asset Management System and each of the 39 subjects of the
Asset Management Landscape. While they are the result of substantial investigation, discussion, review and validation by a wide range
of individuals and experts from different fields (see acknowledgements inside front cover of this guidance), they are also inevitably
provisional and will be subject to refinement and clarification during future iterations. You should monitor the IAM website for updates
and the opportunity to contribute suggestions for such updates.
Notes relating to the maturity scale examples in following pages:
Maturity of the Asset Management System

The GFMAM Asset Management Landscape (39 subjects) does not include a subject for the ‘whole picture’ – yet higher levels
of maturity in Asset Management are often most recognisable in terms of the integration and optimisation of the whole.
Furthermore, the ‘sum of the parts’ is also where the Asset Management System sits, ensuring directional alignments,
coordination, control and continual improvement of all the other subjects. Clearly such integration and management system
sophistication needs to be recognised at different levels of maturity, so the following pages start with a specific topic against
which to observe and recognise such holistic attributes.
ISO 55001 requirements

The Level 3 (Competent) maturity definitions have been aligned for an organisation capable of meeting the ISO 55001:2014
standard for its Asset Management System (whether or not it is certified to this standard). Bold text in Level 3 definitions
identify explicit requirements of the ISO 55001 standard.
Context explanation and Context-specific examples

In addition to the definitive features of each maturity level, the following pages provide a short context description for each
subject and, for high criticality, high complexity and long life asset systems, some further examples of Excellence symptoms or
recognisable features. These symptoms are not definitive requirements; they are provided simply as supportive information to
assist in the recognition of what is possible in such environments.
Related subjects and notes

Many subjects in the asset management Landscape are closely interrelated and interdependent. So there are various diagrams
and notes to illustrate some of these relationships. It is recommended that related subjects are considered both individually
and together in assessing maturity. The combined capability across multiple related subjects is often a better indicator of the
organisation’s maturity than localised strengths in specific topics.

The Institute of
Asset Management
The Asset Management System

The management system for asset management: the organisation’s approach, processes and techniques for directing, integrating,
coordinating and controlling activities to realise value from the asset portfolio.
Maturity
Definition
Level
0 • The organisation has not recognised this subject and/or there is no evidence of commitment to develop it.
• Processes are currently poorly coordinated and often reactive: performance is unpredictable.
• Improvement activities and initiatives have not been sustained or integrated.
• Functional departments are managed independently, with localised performance measures and competing priorities.
1 • The organisation has identified its current state of maturity in asset management capabilities, and the need for an
integrated Asset Management System
• There is evidence of intent and plans to develop such capabilities and management system.
2 • The organisation started a systematic development programme to improve asset management capabilities and
establish an integrated Asset Management System, and can demonstrate that plans are being implemented with
credible commitment and resources.
• Education, communications, risk management, information management are widely recognised as important ‘enablers’
to good asset management and form part of the development plans.
3 • The organisation has implemented and operates an integrated Asset Management System that
conforms with all the requirements of ISO 55001:2014
4 • The organisation has developed, and can justify, a target profile of Excellence for its asset management capabilities
that will deliver maximum value. This profile represents the most appropriate combination of Levels 3, 4 and 5
maturities for all the subject areas of asset management.
• The organisation can demonstrate that it is introducing methods for optimising its practices (what is done, where,
when, how and why) in line with the organisation’s objectives and operating context.
• Methods used for quantification, optimisation and integration are proportionately applied and evidently more
sophisticated than those required by ISO 55001.
• Innovation and continual improvement activities are evident as a cultural, normal way of life and can be widely
demonstrated with evidence of results.
5 • The organisation has evaluated, prioritized and implemented the actions and changes necessary to align the asset
management system to the target profile.
• Members of the top management team understand their individual and collective roles in optimising the management
system to the context of the organisation.
• The organisation can demonstrate that it is systematically and consistently optimising its practices in line with the
organisation’s objectives and operating context.
• Cross-disciplinary collaboration is evident as normal behaviour at all levels, including the top management
determination of priorities, communications and ongoing development of capabilities.
• Total life cycle value, as a decision criterion, always outweighs local interests and priorities of groups within the
organisation.

The Institute of
Asset Management
Asset Management System

Context: This subject deals with the integration of all the elements – how well they are aligned, coordinated, proportionate and
optimised. Asset management should be seen as ‘the whole is greater than the sum of the parts’, particularly at the higher levels of
maturity. So the overall picture needs to be one of holistic insight, process integration, cultural engagement and optimisation of all
aspects of asset management.
Excellence (Level 5) examples below are provided for the management of high criticality, high complexity and long life asset systems.
Level 5 - Excellence differentiators and examples

a) Proportionality: elements of the management system are proportionately applied in relation to the value significance (criticality)
of assets and activities.
b) Innovation: the organisation actively encourages and supports innovation in the continual improvement process, including
evaluation of the cost/benefit/risk of opportunities and the impact on consistency and standardisation.
c) Plans for continual improvement of the asset management system are developed in conjunction with the plans for life cycle
activities, and are prioritised within an integrated SAMP.
d) Under stress conditions, such as significant events or rapid changes in context, the organisation maintains a long term
consideration of any necessary short-term actions, and does not revert to silo behaviours.
e) The Asset Management System is fully integrated with other management systems used by the organisation, and efficiency
opportunities are realized.
f) Management reviews and auditing of asset management and other management systems are aligned and integrated.
Notes and related subjects
The overall picture of asset management maturity evolves from

fragmented subject competencies into a robust, integrated
management system (Level 3). Higher levels of maturity are more
evident in cultural features (aligned values & behaviours) and the
degrees of integration, optimisation & innovation.
An ISO 55001-compliant asset management system is an attribute

of ‘Competent’ (Level 3) asset management – it does not
necessarily represent ‘best practice’.
A highly mature (Excellent) organisation has a management system

that is evidently optimized for the context of the organisation,
including flexibility, innovation and transparency of delivered value.

The Institute of
Asset Management
1. Asset Management Policy

The principles and mandated requirements derived from and consistent with the organizational strategic plan, providing a framework
for the development and implementation of the asset management strategy and the setting of the asset management objectives.
Maturity
Definition
Level
1 • The organisation has identified the need to address this subject, and there is evidence of intent to develop it.
• Processes are poorly controlled and reactive. Performance is unpredictable. Proposals may be under development
and some basic requirements may be in place.
2 • The organisation has identified the means of systematically and consistently achieving competency in this subject,
and can demonstrate that these are being progressed with credible and resourced plans.
• Processes may be planned, documented, applied and controlled at a local level or within functional departments,
often in a reactive mode but able to achieve expected results on a repeatable basis. The processes are insufficiently
integrated, with limited consistency or coordination across the organisation.
3 • The AM Policy has been authorized by the top management

• AM Policy is appropriate to the purpose, scale and nature of the organization
• AM Policy provides a set of principles, intentions, organization’s mandated requirements and commitments.
• AM Policy provides a framework for development and implementation of the Strategic Asset
Management Plan.
• AM Policy is consistent with Organisational Plan, organizational objectives, stakeholder requirements,
constraints and other relevant policies within the organization
• The policy sets out the organization’s commitment to satisfy applicable (e.g. legal, regulatory, etc.)
requirements and to continual improvement
• The policy is effectively communicated to employees and stakeholders as appropriate
• The AM Policy is regularly reviewed and updated to support continual improvement.
4 • The organisation can demonstrate that it is systematically and consistently optimising its practices in this subject,
in line with the organisation’s objectives and operating context.
• Methods used for quantification, optimisation and integration of this subject, both specifically and in coordination
with other subjects, are proportionately applied and evidently more sophisticated than those required of any relevant
ISO 55001 clauses.
• Innovation and continual improvement in this subject is evident as a cultural, normal way of life and can be widely
5 • The policy includes a commitment to achieving excellence through innovation and demonstrating excellence through
benchmarking.
• There is evidence of relevant application of the policy in all parts of the organization and in outsourced service
providers
• Policy includes a commitment to optimise asset life cycle value within any absolute constraints
• Policy includes commitment to cross-disciplinary collaboration in seeking best value in delivery of organisational
objectives

The Institute of
Asset Management
Asset Management Policy

Context: The Asset Management Policy defines the principles and framework for the development and implementation of an
organisation’s approach to asset management. The Asset Management Policy should also provide the principles that guide the
development asset management strategy and objectives.
The Asset Management Policy should be consistent with stakeholder requirements and organisational objectives and constraints.
It should also be aligned with and consistent with other organisational policies.
The Asset Management Policy is a commitment by top management, effectively communicated and regularly reviewed.

a) Questioning any employee about the AM Policy: each person will know where to find it, and what it contains relevant to their
activities
b) The AM Policy and its application provide evident assurance to external stakeholders about AM commitments and governance.
c) The AM Policy has equal status and visibility to other management system policies (such as safety, quality or environmental
management).
d) Asset Management Policy is explicitly referenced within any wider approach or improvement programme e.g. Operational
Excellence, Lean, Manufacturing Excellence or Integrated Management System.
Related subjects
03. Demand Analysis The Asset Management Policy represents organisational commitments
39. Stakeholder Engagement and defines the ‘rules of the game’. Goals, objectives and intended
02. AM Strategy & Objectives approaches should only be included if they are non-negotiable (if they
04. Strategic Planning are conditional or depend upon cost or other considerations, they
05. Asset Management Planning belong in the Asset Management Strategy (SAMP).
06. Capital Investment Decision-Making
07. O&M Decision-Making
08. Life cycle Value Realisation
09. Resourcing Strategy
10. Shutdowns & Outage Strategy
38. Asset Costing & Valuation

The Institute of
Asset Management
2. Asset Management Strategy & Objectives

The strategic approach or plan for the management of the assets of an organisation that will be used to achieve the organizational
strategic plan. The asset management strategy is also known as the Strategic Asset Management Plan (SAMP).
Maturity
Definition
Level
3 • AM objectives have been established at relevant levels and functions of the organisation
• AM objectives consider stakeholder and other relevant requirements
• The AM objectives are Specific. Measurable, Achievable, Realistic and Time bound.
• The AM objectives are documented and included within the Strategic Asset Management Plan (SAMP).
• The SAMP sets out the organization’s strategic approach to the management of its assets and the achievement of
AM objectives.
• The AM objectives and SAMP are aligned with the organisation’s objectives, the AM Policy and relevant
requirements
• The SAMP is consistent with the risk tolerability criteria and the organisation’s decision making criteria.
• The SAMP is consistent with the methodology for determining asset criticality
• The SAMP outlines the role of the asset management system in achieving the AM objectives and plans
for developing asset management capability.
• The SAMP and AM objectives take into account existing and future needs in relation to assets and AM capabilities.
• The SAMP & AM objectives have been communicated to relevant internal and external parties.
• The SAMP and AM objectives are reviewed and updated.
ISO 55001 clauses.
5 • The SAMP describes the current asset portfolio, the known and projected condition, performance, cost and risk
profiles, and the desired future state (objectives and assurance of performance sustainment where appropriate).
• The SAMP horizon incorporates the organisation’s planning horizon, the asset lives and any external constraints
(such as natural resources, contract/license terms or decommissioning / disposal obligations).
• The SAMP is approved and used by top management as the primary reference for all prioritization and planning of
asset management activities.
• The SAMP aligns the portfolio size and composition to business needs and changing demand over the planning
horizon
• The SAMP identifies the optimal combination of strategies and plans for asset systems, specific asset types and asset
management capabilities.
• The role of the SAMP (including AM objectives) is understood by employees, and they can explain how it affects their roles.
• The SAMP includes a plan for innovation in asset management
• The SAMP is consistently delivered as planned

The Institute of
Asset Management
Asset Management Strategy & Objectives

Context: The Asset Management Strategy or SAMP describes the long-term approach to management of the asset portfolio. It would
typically include a set of strategic statements that describe the current and future service levels the organisation aims to deliver and the
current and future Asset Management capabilities that the organisation needs in order to sustainably deliver these outcomes. An AM
Strategy is the meeting point between top-down organisational directional intentions and the bottom-up realities and opportunities
represented by the assets, and organisation’s asset management capabilities.
The Asset Management Strategy (SAMP) would typically include (but be not limited to):
• Current status and objectives for the assets, asset management activities and capabilities.
• The criticality, risk, prioritization and decision-making criteria.
• Strategies for ‘enablers’ such as human factors, asset information and risk management.

a) The SAMP is used as the basis of communication with stakeholders about strategic intentions
b) The SAMP is accepted by key stakeholders (e.g. regulators, investors, customers)
c) The SAMP sets out how the long term needs of the asset base are optimised with short term business priorities.
d) Matching of asset portfolio to business needs includes growth or disposal/mothballing options
e) The information on which the SAMP is based is quality controlled and audited.
The standard of the AM strategy is often indicative of the overall maturity of the organisation.
Organisational
03. Demand Analysis
Strategic Plan 39. Stakeholder
Engagement
02. AM Strategy &

04. Strategic Planning Objectives (SAMP) Note: Only primary
relationships are shown
01. AM Policy
05. Asset Management Asset Management

Planning Plans
06. Capital Investment 08. Life Cycle

07. O&M Decision Making
Decision-Making Value Realisation

The Institute of
Asset Management
3. Demand Analysis
The processes an organization uses to both assess and influence the demand for, and level of service from, an organization’s assets.
Maturity
Definition
Level
• Processes are poorly controlled and reactive. Performance is unpredictable. Proposals may be under development and
some basic requirements may be in place.
3 • The organization identifies internal and external factors that may pose risks or opportunities to
achieving its AM objectives
• The organisation forecasts how these factors can influence the demand for its products and services in the future
and the requirements this will place on the assets.
• Quantitative analysis tools and techniques are used for forecasting demand and required levels of service as
appropriate to the requirements of the organization.
• Demand analysis is used to develop alternative planning scenarios and to address uncertainties in data and models.
• The results of demand analysis are taken into account in setting organizational objectives and AM objectives; and in
developing the SAMP and the AM plans.
• Demand analyses are reviewed and updated to reflect changes.
ISO 55001 clauses.
5 • Quantitative forecasting models and software tools are used to predict demand and required levels of service, based
on direct research, historical trends, projections of socio-economic and environmental factors accounting for
uncertainty in data and models.
• Demand forecasts are developed at both the asset portfolio level and for all primary asset systems.
• Demand forecasts are tested against alternative long term scenarios considering the wider Political, Economic, Social,
Technological and Environmental factors, including the effects of climate change.
• Demand forecasting is based on researched data, of known quality, to the degree that is economically justifiable.
Usage of this data includes indication of confidence ranges and evaluation of scenarios.
• The horizons and levels of detail in demand forecasting are matched to the organisation’s requirements for asset
management planning.

The Institute of
Asset Management
Demand Analysis
Context: Demand analysis typically includes the analysis of future demand for the product or services being offered and the
requirements this demand will place on the asset portfolio.
There are several elements of Demand Analysis that need to be considered:

• Historical demand
• Drivers for demand
• Future demand and change in demand over time
• Changes in required levels of service
• Current and future utilisation and capability of assets
• Impact on the future performance, condition and capability
Demand analysis also considers the use of non-asset solutions where demand may exceed supply and demand also needs to be
managed in order to reduce the demand or reduce the required level of service.
Level 5 - Excellence differentiators and examples:

a) A transport organisation integrates its demand forecasting models with the city/regional/national forecasting models in
determining future changes in traffic levels, travel patterns and origin-destination of traffic. This information is then used to
assess the need for expansion of the transport network, upgrading system capacity, optimising transport services to increase
network utilization and in making capital investment decisions.
b) A manufacturing organisation forecasts changes in its markets and demand for its products as a result of political, economic,
social, technological, environmental and legal changes in the future and how these might influence its customers’ buying
choices.
c) Previous demand forecasts and forecasting methods have predicted actual demand well enough for asset management
planning purposes.
d) The forecasting models, software tools and the data sources used are regularly reviewed and continuously improved.
e) An electricity utility uses system modelling and detailed intelligence from market, customers, government, generators and other
stakeholders to develop demand patterns and growth predictions for alternative scenarios. This information is used with system
models in developing networks and in identifying asset requirements. Demand forecasts are regularly updated and used to
support system development plans and investment decisions.
Related subjects
39. Stakeholder Engagement This subject has strong linkages to ‘asset management strategy’ and
01. AM Policy ‘strategic planning’, providing a quantification of future demands for
02. AM Strategy & Objectives a service or product.
04. Strategic Planning
05. Asset Management Planning
08. Life cycle Value Realisation
Demand forecasts are likely to be more sensitive to some assumptions
compared to others, do you know which are the most influential?

The Institute of
Asset Management
The processes an organization uses to undertake strategic asset management planning.
Maturity
Definition
Level
3 • The strategic planning process to achieve asset management objectives integrates with other
organizational planning activities, including financial, human resources and other support functions.
• The strategic planning process is aligned with and supports the organization’s overall business planning.
• The strategic planning process incorporates the results of supply and demand forecasting.
• The strategic planning process provides a structured approach and framework for developing Asset Management
Plans for asset systems and asset types.
• The strategic planning process and the asset management planning processes are undertaken in an iterative way
combining top-down direction with bottom-up asset needs.
ISO 55001 clauses.
5 • Strategic planning has documented processes for resolving conflicts between organisational objectives, asset
constraints and opportunities, and asset management capabilities
• The processes include criteria and methods for quantified, risk-based optimisation of decisions and plans.
• They provide clarity of directional intent, and preferred methods and rates of implementation (AM objectives) for a)
developing specific AM plans for AM activities and b) developing AM capabilities, the management system, resources
etc.
• Strategic planning horizons are greater than or equal to organisation/business plans
• Strategic planning is dynamic and has both cyclic reviews and event-triggered review processes
• The planning processes promote the development of innovative strategies
• Strategic planning includes scenario modelling for changes in organisational context.

The Institute of
Asset Management
Strategic Planning
Context: Strategic planning includes the processes for determining long-term renewal, enhancement and maintenance work volumes
and costs to meet the asset management objectives. This includes assessing how the organisation can address requirements identified
during demand analysis and stakeholder engagement and how the resulting Asset Management strategy (SAMP) will support the
overall organisational strategic plan.
Strategic planning typically involves reviewing organisational strategic plans, demand forecasts, stakeholder expectations and existing
capabilities. The processes include modelled of investment and change options, uncertainties and alternative scenarios. They should
enable organisations to develop estimates of total work volumes, resources, risks, costs and performance implications of the different
scenarios.

a) Strategic planning processes provide robust guidance for the appropriate methods for developing work activity consistent
with organisational and AM objectives, as well as setting clear criteria for prioritising activity which is rigorously applied and
understanding how to deal with funding constraints.
b) Asset information used in strategic planning is of known source and quality.
c) Confidence levels are assigned to the outputs from the strategic planning process so that stakeholders can understand the
level of accuracy.
d) Optimisations include resolving competing stakeholder expectations, costs, risks and performance and short term/long term
impacts.
e) Clear guidance is provided describing how the strategic planning processes are to be applied that ensure consistency across
the organisation.
f) The output from the strategic planning process is recognised by external organisations as best practice.
g) Asset management strategies are documented for selected asset types (covering their life cycles), asset systems and activity
types. These provide the rationale in development of the SAMP and activity plans, and are consistent with decision making criteria.
Organisational
03. Demand Analysis
Engagement
02. AM Strategy &

01. AM Policy

Planning Plans


The Institute of
Asset Management

The activities to develop the Asset Management plans that specify the detailed activities and resources, responsibilities and timescales
and risks for the achievement of the asset management objectives.
Maturity
Definition
Level
0 • The organisation has not recognised this subject and/or no evidence of commitment to develop it.
3 • Documented Asset Management (AM) plans exist for asset systems and critical assets in alignment
with the SAMP for the achievement of the asset management objectives.
• The AM Plans take account of the risks and opportunities, including how these can change with time.
• The AM plans take account of requirements from outside the AM system and consider the financial
and non-financial implications of the plans.
• The AM plans take account of the results of demand analysis.
• The AM plans seek to address continual improvement opportunities.
• AM Planning activity is integrated with other planning activities such as IT, human resources and
financial planning
• The AM plans detail the processes and methods for managing the assets over their life cycles.
• AM plans include activities and their timescales, the resources to be utilized, the roles and
responsibilities, risks/opportunities and the expected outputs/outcomes from the delivery of the plans.
• Activities within the AM plan are prioritised based on the organisation’s agreed method and decision
criteria documented in the SAMP.
• The AM plans are reviewed and updated regularly, in accordance with specified review periods,
to account for the dynamic nature of risks and opportunities.
ISO 55001 clauses.
5 • Asset Life Cycle Plans exist for asset systems and critical assets, comprising the optimised combination of asset life cycle
activities (create/acquire, operate/maintain, renew/upgrade, decommission/dispose) over their life cycles (or SAMP horizon).
• Activity-type plans (e.g. capital investment, maintenance) are used to ensure efficient delivery, with a hierarchy of
timescales that allow progressively detailed specification of committed activities, resources and timings.
• Asset Management Plans take account of the results of demand analysis and optimise the plans across the different
asset systems and activity-types by employing optimised decision-making methods for capital investment, operations
and maintenance, resourcing, shut-down and outage.
• AM Plans are fully aligned with the long term SAMP, the organization’s business plan and the financial plans.
• Asset Management System Improvement Plan is kept updated to support the delivery of AMP and the SAMP.
• Capability development plans (e.g. recruitment, training, outsourcing, IT support) are in place and assessed for value
added.
• All AM plans are developed using enterprise-wide software tools, and any conflicts resolved using the documented
optimisation and prioritization criteria. Changes are evaluated and managed, including their secondary impacts on
other plans.
• AM Plans demonstrate adoption of innovation and disruptive technologies in the determination of AM activities and
their delivery; and the associated risks are clearly identified and measures put in place for their control.

The Institute of
Asset Management
Asset Management Planning

Context: Asset Management Planning is the process of developing the tasks, resources, timings and responsibilities appropriate to
deliver the Asset Management Strategy (SAMP). This will typically include:
• A review of previous Asset Management Plans and actual implementation history

• Developing whole Life Cycle management plans for critical assets and asset systems
• Options, alternative scenarios and contingency plans
• The costs, resources, risks and constraints that are associated with planned activities
• Analysis of necessary support and AM capabilities, and planning for their development
• Integration of Asset Management Plans with other organisational plans e.g. financial & HR plans.
• How the plans will be approved, monitored, reviewed and updated

a) A network operator develops an asset management plan for the entire network based on the results of demand analysis
over a 30+ year period, consultations with its stakeholders (including customer focus groups, funding bodies, regulators and
local government bodies) to determine the optimised set of asset creation/acquisition, operational and maintenance activities,
renewal/upgrade, decommissioning/disposal activities that will deliver the required business, customer, societal, economic and
environmental outcomes.
b) A manufacturing organisation has made a evidence-supported forecast of demand for its products nationally and internationally
and has decided to develop some new products and discontinue certain existing products as part of its SAMP over the next 15
years. This is manifested in detailed asset management plans for the next 5 years, such as the shutting and re-build of 1 plant,
selling 3 plants, buying 2 plants in new locations, upgrade/modernise critical systems in existing plants.
c) The asset management plans are effectively cascaded and communicated throughout the organisation such that individuals
understand their role and how it contributes to the delivery of the overall plan.
Organisational
03. Demand Analysis
Engagement
02. AM Strategy &

01. AM Policy
05. Asset Management Asset Management Plans

Planning

38. Asset Costing 09. Resourcing 10. Shutdowns &

& Valuation Strategy Outage Strategy

The Institute of
Asset Management
6. Capital Investment Decision-making

The processes and decisions to evaluate and analyse scenarios for decisions related to capital investments of an organization. These processes and
decisions may relate to new assets for the organization (e.g. Greenfield projects) and/or replacements of assets at end of life (Capex sustaining programs).
Maturity
Definition
Level
1 • The organisation has identified a need to address this subject, and there is evidence of intent to develop it.
3 • Capital investment decision-making follows the organization’s criteria for asset management decision-
making agreed with its stakeholders
• The processes and methods for capital investment decision-making are documented, where necessary,
and are aligned with the asset management policy, asset management objectives and SAMP.
• Credible alternatives are considered, including non-capital interventions, at an individual asset, groupings of assets
and asset systems level.
• Options are evaluated considering the agreed decision criteria, constraints and mandatory compliance requirements,
and consider the impact of decisions over all life cycle stages and the organisation’s long term need for the asset.
• Records are maintained of the decision.
• Risk is included in the evaluation, including consideration of how risk changes with time.
• The processes and methods are consistently applied across all capital investments, including new build, replacement
and refurbishment (where this extends asset life). Records are available to demonstrate compliance. Processes consider
the nature and criticality of assets, and are commensurate to risk/opportunity.
• The methods and processes are reviewed for their effectiveness in achieving asset management objectives and are
updated as required.
ISO 55001 clauses.
5 • All capital investment decisions are made with quantified cost/risk/benefit evaluation of options and scenarios, including
intervention timing, to seek optimal asset life cycle value in line with the organization’s documented decision criteria for
investment justification and prioritization.
• The organisation’s processes for capital investment decision-making define the level of analysis required and the decision
authorities. These are proportionate to decision impact (i.e. the proposed intervention cost and the consequences of the
decision or non-action).
• Capital investment decision-making actively seeks and evaluates alternatives that do not include capital investment or
other asset interventions.
• Quantified risks, ‘missed opportunity’ costs, discounted cashflow effects and intangibles (e.g. reputation, customer
satisfaction, employee morale) are included within the decision criteria.
• Assumptions, information sources, uncertainties, data dependencies and sensitivities for each decision are recorded and
auditable, at a level of detail that is proportionate to the impact of the decision being made.
• New technologies and innovative delivery methods (including procurement routes) are sought and evaluated when
determining best value capital interventions.
• The organisation measures and tracks the results of capital investments against the benefits that were forecast in the
original business justifications. Any variances are explored using root cause analysis, and this is used to improve future
capital investment decision-making.

The Institute of
Asset Management
Capital Investment Decision-making

Context: Capital Investment Decision-making includes an evaluation approach of alternative investments with a vision of long-term
benefits (asset life cycle perspective). This approach includes steps of definition, characterization, evaluation and analysis that drive the
best options to decision-making managers. Excellence (Level 5) examples below are provided for the management of high criticality,
high complexity and long life asset systems.
Capital Investment Decision-making typically includes:

• Defining the scope of the investments that are subject to analysis of alternatives;
• The consideration of all life cycle costs;
• Consideration of risks, how they may change over time and how they are evaluated;
• Systematic consideration of information needed to evaluate all options;
• The recording of, and sensitivity analysis to, any assumptions or uncertain information;
• Analysis of the present value and annualized costs and risks of the options being considered.

a) The organisation uses robust and proven (validated) cost, risk, performance (including degradation) and asset life cycle
modelling to evaluate life cycle costs and value of available options, including different intervention timings and asset life cycles.
b) Methods of capital investment decision making are applied consistently across all asset types and asset systems with level of
detail/methods proportionate to their criticality and investment requirements.
c) The organisation fully understands the accuracy and completeness of the information used in capital investment decisions and
takes account of data uncertainty (e.g. sensitivity testing) when making decisions.
d) The organisation benchmarks its capital investment decision-making processes with other organisations facing similar investment
options and constraints, and can demonstrate that it is a class leader.
e) The organisation uses a modelling tool to ensure that investment decisions are consistently evaluated against agreed value
criteria, that all information used in the decision making process has an auditable source, and alternative scenarios are explored
and recorded. The decision support tool ensures that a full record of the decision is maintained as controlled information, and
is accessible to support updates or similar decisions.
f) Capital investment decisions incorporate quantification of asset life cycle Totex (Capex plus Opex), performance value and risks.
An effective post-project appraisal that assesses actual benefits, and

04. Strategic Planning the predicted versus actual costs and performance assumptions, is a
good indicator of AM maturity in this subject.

Planning Plans
01. AM Policy

38. Asset Costing 09. Resourcing 10. Shutdowns & Note: Only primary
& Valuation Strategy Outage Strategy relationships are shown

The Institute of
Asset Management
7. Operations & Maintenance Decision-making

The management activities and processes involved in determining the Operations and Maintenance requirements in support of the
Asset Management objectives and goals.
Maturity
Definition
Level
3 • Operations & Maintenance (O&M) strategies are determined using the organization’s criteria for asset
management decision-making.
• The methods and processes for determining O&M strategies are documented, where necessary, and
are aligned with the asset management policy, asset management objectives and SAMP.
• The processes and methods are consistently applied across all assets and operations and consider asset criticality,
remaining life of assets, required service levels, planned capital interventions and the balance between preventive
and corrective maintenance. Records are available to demonstrate conformance.
• Risk is included in the evaluation of O&M strategies, including consideration of how risk changes with time.
• Asset performance, condition, costs and maintenance history is analysed regularly to verify the effectiveness of O&M
strategies and identify the need for any changes.
• Review processes ensure that, where appropriate, capital interventions will be initiated at the appropriate time and
considered through the capital investment decision making process.
ISO 55001 clauses.
5 • O&M decisions are made with the objective of optimising life cycle value (i.e. cost, risk and performance) and form part
of the planning processes for asset management.
• Operating and maintenance (O&M) strategies are developed during the Create/Acquire phase of new or modified assets/
asset systems.
• Vendor recommendations for O&M are challenged and evaluated/customised for the intended asset systems usage,
criticality, data sensitivity and alternative options
• O&M strategies are systematically reviewed and updated at both asset level and asset system level on a planned, regular
basis and also in response to defined criteria changes, failures or improvement opportunities.
• Methods and tools used to support O&M decision-making are proportionate to asset/asset system criticality. O&M
strategies for critical assets are evaluated using quantified cost/risk/performance optimisation methods.
• The organisation fully understands and documents the quality of, and uncertainties in, the information used in O&M
decision-making and takes account of this when making decisions (e.g. risk quantification and sensitivity analysis).
• Operators and maintainers and other relevant stakeholders have defined roles in O&M decision-making, including
decisions in the Create/Acquire phase of asset life cycles.
• New technologies and innovative strategy and delivery methods (including procurement options, automation, condition
monitoring, analytics and degradation modelling) are actively researched and evaluated in O&M decision-making.

The Institute of
Asset Management
Operations & Maintenance Decision-making

Context: Operations & Maintenance Decision-Making is the determination of the Operations and Maintenance activities necessary to
meet the Asset Management objectives, taking into account organisational policies and applicable regulatory requirements.
The Operations & Maintenance Decision-Making process typically considers:

• Asset criticalities and performance requirements
• Current asset condition and capability (throughput, functional flexibility, reliability)
• Operating envelopes of design and usage, including tolerance to abnormal conditions
• Use of FMECA / RCM techniques to determine appropriate maintenance activities
• Cost / risk / performance optimisation methods to determine appropriate activity intervals
• Asset remaining life, obsolescence and any finite horizon of functional requirements
• Documentation of operating and maintenance requirements, specifications and standards
• Opportunities for capital investment projects (modifications or replacements) to reduce the operating costs or the need for maintenance.

a) The organisation uses robust and proven cost/risk/performance modelling to evaluate different O&M options and determine the
optimum timing/interval for planned interventions, with full quantification of the financial and non-financial impacts (including
the impact of delay or non-performance of the activity).
b) Methods of O&M decision-making are applied consistently across all asset types and asset systems as far as that is appropriate
to their criticality and O&M opportunities. e.g. RAM modelling during the design phase, RCM, RBI, IPF, LCC methods
c) The organisation benchmarks its O&M decision-making processes and tools with other organisations and can demonstrate that it
is a class leader.
d) Performance, life cycle and degradation/risk/failure modes data is obtained from vendors on acquiring of new assets.

Mature organisations use cost/risk/benefit and decision criteria that
enable direct comparison and integration of operations, maintenance
and capital investment options.
Note: Only primary


Planning Plans
01. AM Policy



The Institute of
Asset Management
8. Life Cycle Value Realisation

The activities undertaken by an organization to optimise the costs and benefits of different renewal, maintenance, overhaul and
disposal interventions.
Maturity
Definition
Level
3 • Criteria for ‘life cycle value’ are determined and documented using the organization’s criteria for asset
management decision-making agreed with its stakeholders.
• The methods and processes for life cycle value realisation are documented, where necessary, and are
aligned with the asset management policy, asset management objectives, Strategic Asset Management
Plan, and methods and criteria used for capital investment decision-making and operations and
maintenance decision-making.
• The processes and methods for life cycle value realisation are consistently applied across all assets and operations
in determining the best combination of asset acquisition/creation, utilization, maintenance, improvement, renewal
and disposal activities over the life cycle of assets (i.e. life cycle strategies). Records are available to demonstrate
conformance.
• Risk is included in determining the life cycle strategies, including consideration of how risk changes with time.
• The organisation continually improves its approach to quantifying, modelling, forecasting, measuring and improving
life cycle value.
ISO 55001 clauses.
5 • The organisation has a documented definition of life cycle value with quantified scales of significance in relation to
stakeholder interests.
• The organisation can demonstrate that its procurement, design, construction, operations and maintenance personnel
are committed to delivery of whole life cycle value as their primary objective (overriding any localised, short-term or
personal interests).
• Asset life cycle activities for critical assets are determined and justified based on maximizing the quantified whole Life
Cycle Value (asset performance and other ownership/utilization benefits minus all costs and risks and over the life cycle
of the asset or asset system).
• Life Cycle Plans for assets are developed with consideration of their impact on the asset systems within which the assets
deliver value.
Actual and potential losses of value (e.g. system downtime, performance losses, poor sustainability, high risks or costs)
are monitored, quantified, reported and investigated.
• The organisation’s decision-making processes include evaluation and optimisation of individual actions (cost/benefit/risk/
timing of a discrete task), combined programmes of actions (optimal mix of activities for asset life cycle and across asset
systems) and programme delivery of life cycle activities (coordination, resourcing access, efficiency & effectiveness).
• The organisation can demonstrate how and why its chosen combination of proactive, predictive and reactive strategies
will deliver optimal value.

The Institute of
Asset Management
Life Cycle Value Realisation

Context: Life cycle Value Realisation refers to the methods used in ensuring the best total value is obtained from the combination of
asset acquisition/creation, utilization, maintenance, improvements, renewal and disposal. This requires consideration of interactions
between these activities, and determination of their costs, risks, performance and sustainability effects. Value is determined as the
contribution to the business goals of the organisation and may be manifest in various ways, some not easy to quantify. However
the maximum total value often equates to the lowest whole life cycle ‘cost of ownership’ (Totex plus risks) of the asset, within any
absolute constraints or commitments.
Life Cycle Value Realisation typically includes:

• Evaluation processes and criteria for their usage, including their proportionality to decision criticality and decision complexity;
• A multi-disciplined approach and the quantification of value, including direct and indirect intervention costs (Capex and Opex),
risks, performance and asset lifespan effects;
• Consideration of the asset system and functional role/demand for the asset, since the optimal life cycle of an individual unit may
be constrained by, or may contribute to, a different timescale of required performance or asset management responsibility;
• System modelling to determine which scenarios or solutions will deliver the optimal life cycle value and delivery the required
levels of service (in line with asset management objectives).

a) All parts of the organisation understand how their roles and activities contribute to value realisation.
b) A benefits/value realisation process routinely tracks and reports the effectiveness of life cycle activities in terms of asset systems
performance and achievement of AM objectives.
c) Losses and threats to value are systematically identified and investigated through a ‘loss accounting’ or lost opportunities
tracking method and root cause analysis.
d) The organisation has a benefits realisation process which is routinely used to assure that asset interventions deliver their forecast
life cycle value/benefits.
e) Discounting of future cashflows, risks and performance/benefits in present day values employs appropriate methods such as Net
Present Value or Equivalent Annualised Cost (if comparing options with different horizons or lives).
f) The definition of value include scales for risk/reliability, sustainability, capital and operational costs, asset performance,
compliance and intangibles/perception measures, and these are used in trade-off decisions and life cycle value optimisation.
g) The organisation has documented strategies for the life cycle management of critical assets. These describe the optimisation of
decisions between life cycle phases, and set out the asset replacement and refurbishment approach. These are used to support
the asset management plans for all life cycle phases.

Note: Only primary

Planning Plans
01. AM Policy



The Institute of
Asset Management
Determining and documenting the activities and processes to be undertaken by an organization in order to procure and optimise
the use of people, plant, tools and materials to deliver the Asset Management objectives and Asset Management Plan(s).
Maturity
Definition
Level
3 • The organization determines the required asset management roles and the type and level of human
resources required to establish, implement, maintain and improve its Asset Management System.
• The resourcing strategy is consistent with all relevant mandatory and organizational policies and strategies.
• The organization determines the people, plant, equipment, tools and materials required for meeting
the asset management objectives and for implementing the activities specified in the Asset
Management Plan(s), including those activities required to support and enable those plans.
• The organization develops its resourcing strategy to source the required resources, including through recruitment,
partnering, outsourcing or procuring the resources as appropriate.
• The resourcing strategy is aligned with the Strategic Asset Management Plan and takes into account the organization’s
long term strategy, customer demand for its products/services, availability of skills in the market and the level of
competition amongst the supply chain.
• The resourcing strategy considers costs and risks, including risks associated with the long term sustainability of the
strategy.
• The resourcing strategy is communicated to all relevant functions within the organization, including HR, Procurement,
etc. and is used in developing resourcing plans.
• The resourcing strategy is reviewed periodically in light of market conditions and updated to ensure it remains effective.
ISO 55001 clauses.
5 • Resource strategy utilise quantitative methods for assessing future needs and the associated drivers & decision making
process are recorded and cover: human resource, plant and equipment, spares, specialist tools and materials.
• Organisation considers external impacts and changes in industrial trends to identify & respond to the long and mid-term
impacts on resource demand and plans / manages constraints to mitigate and minimise impact on the business.
• Financial budgets (Capex & Opex, planned and unplanned/contingency) are determined by value-for-money and risk-
based criteria, including ‘zero-based’ budgeting and activity based costing (ABC) methods.
• Human resourcing strategies, competency development, outsourcing and other HR strategies are based upon quantitative
modelling of future needs, risk evaluation and quality requirements specifications.
• Materials, spares & support infrastructure strategies are optimised for supply chain risks, total costs of ownership and risks
associated with unavailability. This includes cost/benefit evaluation and optimisation of procurement strategies, inventory
levels, logistics arrangements with shared risk/reward incentives for suppliers.
• There is evidence from benchmarking that the resourcing strategy is delivering efficiencies on a sustainable basis.

The Institute of
Asset Management
Resourcing Strategy
Context: A Resourcing Strategy includes the analysis necessary to determine the best way to establish or procure the resources
required to deliver the Asset Management activities defined in the Asset Management Plan(s). These resources may include:
• Competent Labour;
• Funding or financial support;
• Spares and materials;
• Plant, equipment and technical services;
• Specialist expertise;
• Data, information, and information systems hardware and software.
The Resourcing Strategy should consider the costs and risks of out-sourcing the provision of resources and how to best integrate the
available resources across the organisation in order to deliver the Asset Management Plan(s) cost-effectively. Where resources are
being procured from outside the organisation, the Resourcing Strategy should include an assessment of the costs and risks relating to
the quantities, quality and timing of the resources to be procured, plus storage, logistics and supplier management implications

a) Resource strategy identifies quantitative methods which are used consistently across the organisation to assess future resource
requirements.
b) The resource strategy covers human resource, plant and equipment, spares, specialist tools and materials.
c) Organisation considers and quantifies external impacts and changes in industrial trends to identify & respond to the long- and
mid-term impacts on resource demand and plans.
d) Resource strategy is undertaken using robust and repeatable processes which are continuously improved and benchmarked
with other leading practitioners.
e) Resource utilisation is monitored and actively managed to ensure that resources are effectively utilised.
f) An organisation has a fully integrated long term planning approach, which includes risk assessment of supply chains and
human resourcing plans. These are matched to competency and training programmes.
g) There is an outsourcing strategy in place to ensure that decisions on the use of internal/external resources are consistently
made to control risk and ensure sustainability of the organisation.
02. AM Strategy &


Planning Plans
01. AM Policy



The Institute of
Asset Management
10. Shutdowns & Outage Strategy

The activities taken by an organisation to develop an optimised strategy for shutdown and outages.
Maturity
Definition
Level
3 • Criteria for developing the shutdown and outage strategy are in line with the organization’s criteria for
asset management decision-making agreed with its stakeholders.
• The shutdown and outage strategy is aligned with the asset management policy, asset management objectives and
the Strategic Asset Management Plan.
• The shutdown and outage strategy considers the requirements of all internal stakeholders and the impact of planned
shutdowns and outages on external stakeholders, including customers.
• The shutdown and outage strategy considers the trade-off between fewer and longer shutdown and outages against
frequent and shorter shutdown and outages.
• The shutdown and outage strategy is consistently applied in the development and implementation of Asset
Management Plan(s).
• The organization ensures that the AM Plan(s) take into account relevant requirements coming from outside the AM
system.
ISO 55001 clauses.
5 • The organisation has a documented formal process for developing its cost, risk and performance-optimised strategy
for planned shutdowns/outages.
• The organisation can demonstrate how shutdown work scopes, durations, dates and intervals have been derived to
deliver minimal cost, risk and performance impact and maximum using asset life cycle value.
• Shutdown strategies clearly identify how safety and risk management is incorporated into their development, including
provision for uncertainties and potential discoveries.
• Shutdown strategies are developed by cross-disciplinary collaboration and consultation, over horizons long enough to
include multiple shutdown cycles, asset life cycle effects and forecasts of changing organisation context.
• Shutdown strategies, and changes to strategies, are communicated to all affected parties with sufficient leadtime
for resource planning, supply chain engagement, financial and performance/operational planning to minimise adverse
impacts.
• Continual improvement processes are demonstrable in cycles of learning from each shutdown to improve the strategy,
efficiency and effectiveness of subsequent shutdowns.
• The organisation has identified the activities that require a shutdown of an asset system, and uses processes to ensure
that the planning of these activities is optimised to maximise value to the business.

The Institute of
Asset Management
Shutdown & Outage Strategy

Context: Shutdown and Outage Strategy includes the procedures and requirements to enable organisations to minimize downtime
and outages whilst considering the cost to carry out the activities defined in the Asset Management Plan efficiently and safely during
planned outages.
The Shutdown and Outage Strategy typically includes:

• Shutdown or Outage objectives agreed by all parties including operations, maintenance, engineering, projects, production planning,
contractors and other service providers.
• Analysis of the costs, risks and benefits of fewer, longer shutdowns compared to more frequent but shorter shutdowns.
• A preliminary scope of work for each shutdown with well understood risks and consequences identified and agreed upon by all
parties involved.
• Processes for finalising the scope of work and schedule (including shutting down processes, and re-commissioning asset systems
afterwards), materials, labour, contractors and other resources required.
• ‘Scope challenge’ exercises to ensure the strategy is robust, and contingency plans.

a) The organisation has effective processes for determine the optimum timing, intervals and scopes of planned shutdowns.
Planning is cross-disciplinary and is supported by quantified cost/risk/performance modelling.
b) The Shutdown strategy is optimised to incur the lowest combination of costs, risks, downtime and performance losses.
This includes costs and risks introduced by the shutdowns and any period of re-commissioning thereafter.
c) Shutdown and access strategies can be shown to deliver the best value compared to alternative options.
d) An electricity distribution utility has outage plans 5 years ahead which consider the needs of all stakeholders.
e) An oil refining or petrochemical facility may have such shutdown strategies established with 4-, 5-, 6-yearly or longer cycles,
with 2-3 year individual event planning processes and ‘post-mortem’ learning and optimisation methods.
Notes and related subjects Shutdown strategies are important in

management of continuously operating
asset systems: quantified, risk-based,
multi-cycle optimisation of such
strategies is indicative of high maturity
02. AM Strategy & in asset management.
04. Strategic Planning Objectives (SAMP)
Note: Only primary

05. Asset Management Asset Management relationships are shown
Planning Plans
01. AM Policy



The Institute of
Asset Management
11. Technical Standards & Legislation

The processes used by an organization to ensure its asset management activities are compliant with the relevant technical standards
and legislation.
Maturity
Definition
Level
3 • The organisation determines the full extent of financial, non-financial and technical information required
to enable it to meet its obligations.
• The organisation has all relevant documented information required by applicable standards and legal
and regulatory requirements to support the Asset Management System.
• The organisation has a process to ensure that any documents required by the Asset Management
System and any standards and applicable legal and regulatory requirements are available and suitable
for use when required and are adequately protected.
• The organisation has a process to create and regularly review and update the documented information.
• The organisation has a process to control the documented information, including the distribution and
access, storage and preservation, version control and retention and/or disposal.
• The organisation has a process to identify and control documented information from sources outside
the organisation that is required by the Asset Management System.
• Technical documents are aligned to and support the Asset Management System.
• The organisation is able to demonstrate how any changes to technical and legislative documentation are appropriately
communicated.
• The organisation has a process in place to ensure that there is consistency and traceability between organisational
data in compliance with any legal and regulatory requirements.
ISO 55001 clauses.
5 • The monitoring, management of, and compliance with, technical standards and legislation are effectively incorporated
into the Asset Management System, including monitoring and forecasting of likely changes.
• The organisation is proactively involved in influencing the development of technical standards and legislation to
improve performance and demonstrate measurable benefits against corporate objectives.

The Institute of
Asset Management
Technical Standards & Legislation

Context: Technical Standards and Legislation includes processes for the identification, applicability updating and compliance assurance
of standards and legislation in the Asset Management context.

a) Ability to persuade and influence governmental, regulatory, technical and other bodies in shaping relevant technical standards
and legislation.
b) Full coordination of cross-functional departments and the integration of their systems or registers for technical standards and
legislation to provide a single source of truth.
c) A clear understanding within the organisation of how it compares to others and the ability to demonstrate that developments
in technical standards and legislation have yielded measurable benefits against corporate objectives.

This subject is represented in the compliance commitments within
Related subjects
‘Asset Management Policy’ and has particular significance in the
01. AM Policy
life cycle stage of Asset Creation & Acquisition. It also has strong
12. Asset Creation & Acquisition
links to compliance monitoring in the management system and in
13. Systems Engineering
overall audit & governance.
14. Configuration Management
16. Reliability Engineering
36. Asset Management System Monitoring
37. Management Review, Audit & Assurance
An immature organisation simply reacts to new standards or

legislation; it does not engage in activities to influence and shape
such requirements.
In a mature organisation, internal standards are used and regularly

validated to control the risks of non-compliance with external
requirements.

The Institute of
Asset Management

An organization’s processes for the selection, construction or acquisition, installation and commissioning of assets.
Maturity
Definition
Level
3 • The organisation determines and documents the processes and methods related to the acquisition and creation of
assets.
• The organisation’s processes and methods related to the acquisition and creation of assets are integral to the life
cycles of the assets.
• The organisation’s processes and methods related to the acquisition and creation of assets identify and manage the
technical and non-technical risks associated with the acquisition and creation of assets for the organisation.
• The documented processes ensure that the acquisition and creation of assets is consistent with organisational
standards and with Asset Management criteria.
• The acquisition process complies with legal and statutory requirements, including all relevant organisational policies
and the Asset Management Policy.
• The organisation considers appropriate life cycle costing in the acquisition and creation of assets.
• The acquisition process utilises project management controls to ensure the timely and cost efficient delivery of the
asset management plan(s) and consideration of relevant time horizons.
ISO 55001 clauses.
5 • The organisation systematically captures requirements of external and internal stakeholders for the asset acquisition/
creation and turns these into clear statements of project purpose, outputs and outcomes aligned with asset
management objectives.
• Project/programme requirements (technical, financial and non-financial) are produced, agreed with stakeholders and
controlled throughout the project duration. Methods for verification of fulfilment of requirements and stakeholder
outcomes are produced.
• Project complexity, management maturity and project/programme delivery capability are assessed to determine the
appropriate asset procurement route.
• A number of alternatives, including innovative and non-asset solutions, are considered for achieving project outcomes
and evaluated consistently using the organisation’s asset management decision criteria on a ‘whole system’, ‘whole
life’ basis.
• Systems Engineering, Configuration Management, Information Management, Risk Management and Reliability
Engineering techniques and processes are used in the development of project requirements and effective control of
asset acquisitions or creation projects.

The Institute of
Asset Management
Asset Creation & Acquisition

Context: Asset Creation & Acquisition describes processes for choosing, creating or acquiring, installation and commissioning of
assets. This subject also includes elements of approval and releasing of funding, arrangements for hand-over to operations, the
monitoring of actual costs and benefits of this life cycle stage. The development of requirements analysis, design and verification
and validation strategies are covered in Systems Engineering.
The activities within this subject include:

• Application of investment policies & processes
• Development and implementation of construction processes
• Development and implementation of procurement processes
• Project Management
• Development and implementation of commissioning processes
• Handover to Operations

a) Optimised project management outcomes related to time, cost and quality.
b) Optimised programme level outcomes aligned to corporate objectives, defined success criteria, stakeholder requirements and
benefit realisation.
c) A clear understanding within the organisation of how it compares to others and the ability to demonstrate that the creation or
acquisition of new assets have yielded measurable benefits against corporate objectives.
d) Use of BIM (Building Information Modelling) techniques for specifying, generating, sharing and controlling project information
as part of the organisation’s overall asset information model for the overall life cycle of assets.
e) Use of project risk management techniques for the effective control of project cost, schedule and quality as part of an overall
Enterprise Risk Management System.
f) Use of effective value management, benefits realisation management and change management approaches to ensure that
major projects deliver the expected benefits.
Mature organisations evaluate new asset options for operability, maintainability, sustainability, with selection decisions based
on whole life cycle value (rather than just on initial project cost and ‘on time, on budget’ delivery).
Asset life cycle delivery processes
12. Asset Creation 21. Asset Decommissioning

17. Asset Operations 15. Maintenance Delivery
& Acquisition & Disposal
19. Shutdown & Outage 20. Fault & Incident

Management Response
Procurement and resourcing
26. Procurement & Supply

18. Resource Management
Chain Management

The Institute of
Asset Management

An interdisciplinary, collaborative approach to derive, evolve and verify a life-cycle balanced system solution which satisfies customer
expectations and meets public acceptability.
Maturity
Definition
Level
3 • The organisation determines and documents the processes and methods to manage its assets throughout their lives.
• The organisation considers the interaction and interdependency of assets operating as a system (or systems).
• The organisation has processes to ensure that overall system solutions are optimised for cost, risk and performance.
• The organisation has processes and methods that consider asset risks that will change over time and any residual
liabilities beyond the period of operation or use of the asset(s).
• The Asset Management System is of an appropriate scale according to the nature and complexity of the organisation.
• The organisation has a process in place to ensure that the relevant systems engineering standards are followed.
• Ensure risk is considered and managed at a system level consistent with asset and other risk management processes.
ISO 55001 clauses.
5 • The introduction and modification of complex, interacting asset systems are managed at an appropriate level of
complexity. The required outcomes are effectively defined with all relevant stakeholders’ inputs. Project and
programme outcomes are validated against the original whole-life cost and value optimised requirements.
• The organization can demonstrate how it scales appropriately the process to the nature of the stakeholder and or
assets requirements and its interdependencies. This includes:
• Verification and validation execution is carried out throughout asset creation and acquisition, considering the build-up
of solutions at subsystem and systems level (V model) where appropriate and incorporated into AM processes.
• Collaborative derivation solutions across the organization, disciplines to explore asset and other options to deliver
organizational, AM objectives, and service requirements.
• Appropriate modelling to understand the overall performance of the system and in particular the outputs and
performance to the stakeholders.
• Risk is assessed and managed at each level of the organisation consistent with asset and other risk management processes.
• A clear understanding within the organisation of how it compares to others system engineering practises.
• Have the ability to demonstrate that the creation or acquisition of new assets have yielded measurable benefits against
corporate objectives.

The Institute of
Asset Management
Systems Engineering
Context: An interdisciplinary, collaborative approach to derive, evolve and verify a life cycle, systemic solution which satisfies
stakeholder expectations.
Systems Engineering describes policies and processes for requirements analysis, design and evaluation of assets within their functional
system context. Systems Engineering encompasses managerial and technical activities. The activities within this subject include the
generation, development and execution of Systems Engineering policies and processes.
Verification and validation of implementation are considered as part of Asset Creation and Acquisition.

a) The organization can demonstrate proportionality in the processes of systems engineering in relation to stakeholder and assets
requirements and necessary levels of complexity. This includes:
• The build-up of solutions at subsystem and systems level (V model) where appropriate.
• Collaborative derivation of solutions across the organization, disciplines to explore asset and other options to deliver
• Appropriate modelling to understand the overall performance of the system and in particular the outputs and performance.
• Effective definition, verification and validation of work requirements through the project or programme delivery.
b) Clear description and understanding of system interdependencies and potential impacts on requirements.
c) Risk is assessed and managed at a system level, consistent with asset and other risk management processes.
d) A clear understanding of how chosen systems compare with alternatives and ability to demonstrate that the systems and new
assets are the optimum combination for delivery of asset management objectives.
Related subjects This subject has strong linkages to the ‘asset creation &
03. Demand analysis acquisition’, ‘configuration management’ and ‘decision-making’
06. Capital investment decision-making subjects – making sure that new assets or changes to assets are
07. O&M decision-making appropriate and integrated into effective functional systems.
Systems engineering can be a complex and resource- intensive

activity: mature organisations adopts a range of methods
proportionate to the criticality of the systems and assets being
created/modified.

The Institute of
Asset Management

A management process for establishing and maintaining consistency of a product’s physical and functional attributes with its design
and operational information throughout its life.
Maturity
Definition
Level
3 • The organisation determines and documents the processes and methods to manage its assets
throughout their lives.
• The organisation determines its information requirements to support its assets throughout their lives
and also to support its asset management system.
• The organisation has processes for assessing impacts of planned changes and for managing risks that arise.
• The organisation has processes for internal and external dissemination of information that is relevant
to its assets throughout their lives.
• The organisation has processes for evaluating and reporting asset and asset system performance.
• The organisation has processes for identifying non-conformities or incidents related to its assets and
asset systems and for taking appropriate action to deal with them.
• The organisation determines the requirements of how to identify and document asset information to enable the
configuration of asset systems ensuring the physical and functional attributes are consistent with the design and
operational requirements throughout its life.
• The organisation has clear processes defined for the collection and quality control of information and the addition of
the information onto appropriate information systems.
• The organisation is compliant with relevant configuration management standards.
ISO 55001 clauses.
5 • The introduction and modification of complex, interacting asset systems are managed at an appropriate level of
complexity. The required outcomes are effectively defined with all relevant stakeholders’ inputs. Project and
programme outcomes are validated against the original whole-life cost and value-optimised requirements.
• The organization can demonstrate how it scales appropriately the process to the nature of the stakeholder and or
assets requirements and its interdependencies. This includes:
• Verification and validation execution is carried out throughout asset creation and acquisition, considering the build-up
of solutions at subsystem and systems level (V model) where appropriate and incorporated into AM processes.
• Collaborative derivation solutions across the organization, disciplines to explore asset and other options to deliver
• Appropriate modelling to understand the overall performance of the system and in particular the outputs and
performance to the stakeholders.
• Risk is assessed and managed at each level of the organisation consistent with asset and other risk management processes.
• A clear understanding within the organisation of how it compares to others system engineering practises.
• Have the ability to demonstrate that the creation or acquisition of new assets have yielded measurable benefits against

The Institute of
Asset Management
Configuration Management
Context: Configuration Management describes policies and processes for the establishment and monitoring of an asset’s functional,
physical and support status. Configuration Management is closely aligned with the principles and requirements of Systems
Engineering. The management activities within the scope of this subject are the development and execution of Configuration
Management policies and processes.

a) The configuration management system is scaled and its complexity is appropriate to the nature and complexity of the organisation.
b) Configuration management is an integrated process within the systems engineering and asset creation processes within the
organisation.
c) The organisation has an evidentially developed definition of its internal requirements and including all external interface
requirements, e.g. integrity management.
d) The organisation has a complete configuration management process that is periodically reviewed and validated by a third party.
e) A clear understanding within the organisation of how it compares to others and the ability to demonstrate that the effective
understanding and management of asset configuration have yielded measurable benefits against corporate objectives.
Related subjects
This subject has strong linkages to the ‘asset creation &
03. Demand analysis
acquisition’, ‘systems engineering’ and ‘decision-making’ subjects –
06. Capital investment decision-making
making sure that new assets or changes to assets are appropriate
07. O&M decision-making
and integrated into effective functional systems.
15. Maintenance Delivery
Does your organisation regularly review and refine the

configuration of its critical assets and asset systems?
Like Systems Engineering, Configuration Management can be a

complex and resource-intensive activity: mature organisations use
a range of methods suited to the criticality of systems and assets
being managed.

The Institute of
Asset Management
15. Maintenance Delivery

The management of maintenance activities including both preventive and corrective maintenance.
Maturity
Definition
Level
3 • The organisation determines and documents the processes and methods to manage its assets
throughout their lives.
• The organisation determines the extent, resourcing, responsibilities and target achievement of actions
required to manage its assets.
• The organisation plans, implements and controls processes needed to implement asset management plans
• The organisation determines its information requirements to support its assets throughout their lives
and also to support its asset management.
• The organisation reviews the performance of its assets and asset systems and takes appropriate action
to manage asset performance.
• The organisation has processes for identifying non-conformities or incidents related to its assets and
asset systems and for taking appropriate corrective or preventive action to deal with them.
• The organisation has identified maintenance actions as part of processes and methods to manage its assets.
• The organisation reviews the effectiveness of its maintenance strategy to ensure optimal delivery.
• The organisation adapts maintenance as operating context, objectives and constraints change over time.
ISO 55001 clauses.
5 • The organisation has a comprehensive and integrated maintenance delivery system comprising processes, procedures and
tools that are employed consistently.
• Scheduling and delivery of maintenance activities are coordinated with the relevant functional teams and other life cycle
activities, including those managed by service providers.
• The scheduling and delivery of maintenance optimises costs, risks and performance for the combination of proactive and
reactive work, with sufficient flexibility to react to changing circumstances and exploit improvement opportunities.
• Internal and external evidence and experience of maintenance delivery is used on a continual basis to improve delivery
methods and other asset related activities. The maintenance delivery system is periodically reviewed against applicable
best practice and stakeholder feedback to identify improvement opportunities.
• Personnel responsible for delivery of maintenance activities are educated in the value of the activities, their criticality and
the impact of non-delivery, delays or inadequate standards of delivery.
• Maintenance delivery practices are benchmarked against comparable organisations and are shown to be best in class for
efficiency and effectiveness.
• Innovations and new technologies are actively sought and evaluated to enable improvements in maintenance delivery and
other life cycle activities.
• The interactions and teamwork between maintenance disciplines, operations, external service providers, major projects
and other key stakeholders are aligned and integrated within maintenance delivery to optimise value.
• Maintenance delivery processes include capture and feedback of data required for performance monitoring and asset
management decision-making: data is trusted and can be demonstrated to be of suitable quality.

The Institute of
Asset Management
Maintenance Delivery
Context: The organisation of maintenance activities within a agreed policies including definition of specifications and schedules,
execution procedures, procedures for missed maintenance and the capture and utilisation of maintenance and inspection
measurements and results.
These activities include:

• Establishing the resources needed to implement and support maintenance activities.
• Determining management processes, responsibilities and accountabilities for maintenance delivery as part of the asset management
system.
• Executing, controlling and assuring the effective and efficient delivery of maintenance activities.
• Day to day integration of maintenance delivery with operations, engineering, finance, HR, IT and other asset management activities.
• Capture of asset condition, performance and maintenance records, and usage of such information in determining appropriate
changes to further maintenance delivery (e.g. condition data used to schedule preventive action).

a) Operating practices and flexibilities (e.g. system loading profiles, scope to operate temporarily beyond asset’s designed envelope,
service delivery constraints) are used as inputs into the maintenance delivery to optimise value.
b) The organisation has a clear understanding of how it compares to other organisations that are considered to be ‘best in class’ by
their peers at delivering maintenance. It is able to show where differences exist and why. e.g. An automotive company chooses
not to adopt a particular technology at one site because the business case could not be made; even though other sites have
found the technology to be worthwhile in their cases.
c) The organisation uses streamlined delivery processes, highly competent and motivated workforce, reduced waiting times and
innovative use of technology to achieve maintenance efficiency and effectiveness ‘stretch’ targets e.g. a utility network uses
mobile devices to enable maintainers to locate assets through GIS technology and access/record information remotely.
d) Work management and information systems are used systematically by those that interact directly with the assets. Such
users trust the data and understand how best to navigate and exploit such systems to support maintenance delivery and
continual improvement. e.g. A technician can raise work orders, assign materials, access standard procedures, record findings,
analyse findings and justify/update future task requirements.
e) Wherever relevant, maintenance and inspections activities are carried out by the most appropriate method (human and/or
technology). e.g. A manufacturer trains its many machine operators to carry out certain first line maintenance activities.
f) Spares inventory levels are optimised in relation to usage, unavailability consequences, procurement costs and lead-times,
holding costs and re-supply options.


Management Response

Chain Management

The Institute of
Asset Management

The processes for ensuring that an asset shall be able to operate to a defined standard for a defined period of time in a defined environment.
Maturity
Definition
Level
3 • The organisation determines and documents the processes and methods to manage its assets throughout their lives.
• The organisation determines its information requirements to support its assets throughout their lives and also to
support its asset management system.
• The organisation has processes for assessing the impacts of planned changes and for managing risks that arise.
• The organisation has processes for evaluating and reporting asset and asset system performance.
• The organisation reviews the performance of its assets and asset systems and takes appropriate action.
• The organisation has processes for identifying non-conformities or incidents related to its assets and asset systems and
for taking appropriate corrective or preventive action to deal with them.
• The organisation uses a root cause analysis process that is aligned with the reliability plan goals, and has developed
preventative actions that consider cost, risks and performance.
• The organisation tracks mitigation actions resulting from root cause analysis, and carries out periodic reviews and
revisions of the reliability plan to reflect root cause findings.
• The organisation is implementing and following a reliability plan which includes definitions of reliability goals and
requirements.
• The organisation carries out systematic periodic reviews and revisions of reliability plans using appropriate tools and
techniques.
ISO 55001 clauses.
5 • The organisation has a documented set of independently validated methods for reliability engineering and clear guidance
for their appropriate usage.
• Reliability engineering methods are proportionately applied to assets and asset systems in all life cycle phases.
• Risk implications are evaluated in relation to economic impact and any absolute requirements to determine the optimal
reliability targets.
• The organisation compares its reliability engineering activities with national and international organisations and can
demonstrate that it is a leading practitioner
• Information used for reliability engineering includes both internal and relevant external sources.

The Institute of
Asset Management
Reliability Engineering
Context: Reliability Engineering is the discipline of analysis and determination of the technical and managerial options and
interventions that will maximise asset reliability during its life cycle.
The processes typically include:

• Application of predetermined methodologies for reliability analysis to support asset management decision- making during asset
creation or acquisition, operations and maintenance.
• Development of processes and appropriate usage of RAMS modelling
• Collation of data and knowledge to support reliability engineering studies and reliability improvement.
• Day to day process integration with engineering design, operations, maintenance, risk management and other organisational functions.
• Identifying the resources needed to enable reliability assurance
• Work within the responsibilities, authorities and accountabilities for asset reliability improvement
• Clarifying and supporting process responsibilities, authorities and accountabilities for asset reliability improvement as part of the
asset management system.
• Specifying reliability engineering competencies (and supporting measures) as part of the asset management system.

a) Full integration of reliability engineering approach into the design, procurement, configuration, operations, maintenance strategy
and delivery activities.
b) The implementation of reliability growth plans are consistently shown to yield measured benefits towards AM objectives.
c) Probabilistic methods used for reliability engineering include, where appropriate, statistical distribution models and Bayesian
learning methods, and can handle discontinuities in distributions.
d) The organisation is recognised by peers for having leading practices in reliability engineering – such as being regularly referenced
by other organisations, or achievement of relevant reliability performance awards.
e) The organisation demonstrates a systematic migration from reactive to pro-active behaviours and interventions, at an
organisation-wide, cultural level with cross-disciplinary endorsement.

This subject has strong linkages to the ‘O&M decision-making’,
Related subjects
‘fault & incident response’ and asset performance monitoring
07. O&M decision-making
subjects – and should be an integral part of a proactive ‘plan-do-
check-act’ cycle.
15. Maintenance delivery
20. Fault & Incident Response
35. Assets Performance & Health Monitoring
Mature organisations use reliability growth plans which utilise

improvements in maintenance, operations and asset upgrades or
enhancements to target and deliver continual improvements in
asset and asset system reliability.

The Institute of
Asset Management
17. Asset Operations

The processes used by an organization to operate its assets to achieve the business goals.
Maturity
Definition
Level
3 • The organisation is systematically managing the interaction between operations and other asset management activities
over the lifecycle of the assets.
• The organisation is using operational processes to address identified risks and opportunities and corrective and
preventive actions.
• The organisation has in place processes to ensure that all operating requirements are aligned with the
Asset Management System.
• The organisation clearly documents the processes, activities, responsibilities and risks related to
outsourcing, and ensures the integration of outsourcing activities into the Asset Management System.
• The organisation has controls in place to ensure operational activities are carried out in accordance with the
requirements specified.
• The organisation clearly documents in appropriate standards and specifications the operating
requirements for all assets.
• The organisation retains documented information as assurance that operational activities have been undertaken in
accordance with requirements.
• The organisation has implemented mechanisms to ensure appropriate interactions between operations and other
functions over the lifecycle of the assets.
• The organisation has a change management process that controls, reviews and mitigates the consequences of planned
changes.
• The organisation collects and assesses feedback and results from all operating activities and implements improvement
to operating regimes as required.
ISO 55001 clauses.
5 • All operational activities that affect the assets (e.g. operations, maintenance, engineering, etc.) are coordinated through
an integrated Asset Management System which is regularly reviewed.
• The assets are actively monitored and operated to agreed levels (based on current condition and context) in accordance
with documented boundaries. When operating outside of these limits, agreed risk management and control techniques
are used to assess the impact and act accordingly.
• Asset health is monitored using advanced analytical techniques and deviations from normal are investigated accordingly.
• All operational resources that interact with the assets understand their duties and levels of responsibility as part of the
asset management system; particularly where boundaries have existed traditionally.
• All planned events (e.g. shutdowns, installations, etc.) are handled in a collaborative way so that they have minimal
impact on the operation as a whole.
• Experiences of operational activities and operators are used on a continual basis to improve operations and other asset
related activities.

The Institute of
Asset Management
Asset Operations
Context: Asset Operation is concerned with how to operate the assets within the appropriate design, maintenance and operational
parameters, and processes that provide instructions to Operators to achieve this. This includes the development of an Operations
strategy and the approach, plans, controls and resources involved in managing and implementing operational activities.

a) Full integration of asset operations with other asset management activities (e.g. operators involved in asset design/selection
decisions, maintenance strategy and delivery and reliability engineering activities).
b) Sharing information and benchmarking performance to enable continual improvement, both within the organisation and
compared to peers.
c) A clear understanding within the organisation of how it compares to others and the ability to demonstrate that asset operations
have yielded measurable benefits against corporate objectives. e.g. operators are proactive in sharing information / knowledge
to assist other functions to make value improvements.
Mature organisations have broken down the barriers between asset operators and maintainers to develop team-based
responsibility for asset performance and health. Key performance indicators are designed to reinforce this collaboration
(e.g. ratio of asset outputs to operating and maintenance costs).


Management Response

Chain Management

The Institute of
Asset Management

Implementing the Resourcing Strategy to manage the use of funds, people, plant, tools and materials in delivering asset management
activities.
Maturity
Definition
Level
3 • The organisation provides adequate resources for the management of the Asset Management System, in accordance
with the resourcing strategy.
• The organisation implements and controls the requirements of the resource strategy; which address the needs of the
Asset Management Plan(s) and Asset Management System.
• The organization delivers activities through an aligned and integrated resource management process.
• The organisation allocates people resources to work in a systematic way which ensures and justifies the effectiveness
and efficiency of resources.
• The organisation considers and justifies work priorities, risks and flexibility to changes in work plans, while allocating
people and plant resources.
• The organisation’s inventory and stock is delivered according to specific requirements within agreed timescales.
• The organisation maintains and calibrates all equipment and tools at appropriate frequencies that are consistent with
the delivery of activities and objectives.
• The organisation applies consistent processes to ensure that outsourced resources meet internal and external
specifications and requirements.
ISO 55001 clauses.
5 • Optimised and committed resource plans exist which can be demonstrated to deliver the work volumes and costs
required.
• Resource planning is integrated across the organisation to enable the optimisation of resources across disciplines,
geographies and asset areas, with the use of multi-disciplinary resource where possible.
• Processes are in place to ensure that requirements of the resource strategy are implemented and controlled.
• The organization can demonstrate alignment between the required resourcing set out in the strategy, the processes
to determine resource requirements and the asset management plans.
• The organization has a documented organizational structure with clear accountabilities and resources in place with
adequate capability and authority to discharge those accountabilities.
• Succession plans, recruitment and HR development programmes are in place.
• Feedback from the resource management plan to the resource management strategy to ensure continuous improvement.

The Institute of
Asset Management
Resource Management
Context: Managing the resources required for the efficient and effective execution of asset management activities. Such resources
may include:
• Finance
• Competent Labour
• Spares and materials
• Tools, facilities and equipment
• Specialist services and expertise
• Computer hardware and software
• Data and Information
Resource management also covers the coordination and integration of resource utilisation across the organisation, the asset portfolio
and between asset management activities.

a) Resource management includes the optimisation of supply chain options, resources and delivery options across the
organisation’s disciplines, geographies and asset systems.
b) The organisation actively reviews the effectiveness of the resource plans to demonstrate they have been delivered and have
yielded measurable benefits in delivering corporate objectives.
c) Resource management is continuously improved, with the root causes of delivery variances to plan identified and used to
improve future planning and delivery.
Other Related subjects

07. O&M Decision-making Mature organisations have agile resource management that seeks
12. Asset Creation and Acquisition opportunities for rationalisation, delivery efficiency and supply chain
17. Asset Operations innovation. Resourcing strategies are implemented transparently
15. Maintenance Delivery and decisions are risk-managed.
19. Shutdown & Outage Management
26. Procurement & Supply Chain Management

Chain Management

The Institute of
Asset Management

An organization’s processes for identification, planning, scheduling, execution and control of work related to shutdowns or outages.
Maturity
Definition
Level
3 • Shutdown constraints have been considered when developing the Strategic Asset Management Plan and the Asset
Management Plan.
• Planning of delivery activities associated with shutdowns and outages is consistent with shutdown strategy
• Processes are in place for managing and controlling shutdown activities to ensure the impact on service
and stakeholders is minimised and measures are in place to ensure unplanned shutdowns are minimised
and risk managed.
• Mechanisms are in place to maximise opportunities arising from unplanned or extended shutdowns.
• Effective communication is in place across lifecycle activities to ensure that shutdown plans are aligned in order to
minimise downtime.
• Lessons learnt from shutdowns and outages are used to improve shutdown management.
ISO 55001 clauses.
5 • The organisation has researched, innovated and implemented leading practices in planning of shutdowns to optimise
work scopes, shutdown timing and duration, critical path work sequencing, resourcing and supply chain options.
• The organisation has rigorous process for Identification and application of relevant technical standards and regulatory
requirements, and methods of ensuring compliance.
• The organisation has rigorous for managing and controlling access to asset systems, including isolation, permits to
work and subsequent restart procedures.
• The organisation has rigorous processes for work management during shutdowns, including management of
contractors, work supervision, competency and quality assurance. Information is shared between to all affected
parties, including real-time updating and feedback mechanisms.
• The organisation has rigorous processes for identification, cost/risk evaluation and management of ‘emerging’ work,
with disciplined change management of the work scopes, the critical path and shutdown duration.
• Mechanisms are in place and used to evaluate opportunities for changing asset management strategies as a result of
shutdowns and changes to shutdowns.
• Information about the planning, management and implementation of shutdowns is captured and analysed.

The Institute of
Asset Management
Shutdown & Outage Management

Context: Shutdown and Outage Management describes policies and processes for the implementation of the shutdown and outage
strategy to ensure the effective and efficient delivery of shutdowns and outages. This subject includes processes relating to the
identification and filtering of shutdown work, planning and scheduling, work execution and control, and the learning cycle from one
shutdown to the next.
The activities within this subject include the development, execution and management of shutdown management policies, processes
and activities.

d) Minimizing shutdowns is considered in all stages of strategy development, asset life cycle planning and work management.
e) Processes for determining and optimising shutdowns (work scopes, durations and delivery) are quantified and take into account
risk, opportunity, asset criticality, and specifically consider impact on stakeholders and risks that change with time.
f) Analysis of minimum return to service time over the stages of the shutdown, contingency requirements considered, put in place
and communicated
g) A clear understanding within the organisation of how it compares to others and the ability to demonstrate how shutdown
optimisation has yielded measurable benefit in terms of delivery of corporate objectives


Management Response
10. Shutdowns & Procurement and resourcing

Outage Strategy
Chain Management
A mature organisation treats all availability of assets as value opportunity.

So planned Shutdowns and Outages (see Strategy subject 10.) must be
justified in terms of their business impact and the value they will deliver
(e.g. legal compliance, risk reduction, performance gains, costs avoided).
Shutdown and Outage Management (this subject) seeks to minimise the
costs, risks and downtime impact, while ensuring work quality in delivery
of such value.

The Institute of
Asset Management

Responding to failures and incidents in a systematic manner, including incident detection and identification, fault analysis, use of
standard responses, temporary and permanent repairs as well as taking over and handing back of sites.
Maturity
Definition
Level
3 • The organisation has documented and systematic processes and/or plans in place for managing
unplanned events - including nonconformities with Asset Management processes.
• Response plans include provision for adequate resources
• Response plans are integrated across the organisation
• The organisation has identified the scope, method and timing for analysis and evaluation activities for failures,
incidents and non-conformities in order to determine the root cause(s)
• Evidence is retained of analysis of failures, incidents and non-conformities
• Procedures for investigation of incidents and reporting align with mandatory and other requirements.
• Processes are in place for planning and controlling the implementation of (permanent and/or temporary) treatment
actions, including taking ownership of and handing back assets, where relevant treatment actions are proportionate
to the nature and scale of the issue.
• Actions include, where applicable, elimination of the cause of nonconformity and any changes to the Asset
Management System to prevent future occurrences
• Records are kept of faults, incidents and non-conformities, actions taken and outcome of actions taken.
ISO 55001 clauses.
5 • The organisation can demonstrate that it is proactive and innovative in this area; that it has researched and
demonstrates (e.g. via benchmarking or awards) leading practices in analysis and criticality-proportionate responses
to faults and incidents, including resources and timescales.
• Faults are rectified by whoever (cross-disciplinary, subject to competency) is best positioned to address them.
• Materials and resources necessary for fault rectification are mobilised as needed, taking into account any risks this
usage represents (e.g. theft)
• Investigation of faults and incidents includes root cause analysis and consideration of ‘near misses’ and ‘lost
opportunity’ events.
• Investigation processes include consideration of the possibility of similar events occurring on other assets/systems and
in other processes, and such possibilities are included in treatment decisions.
• Processes also include risk assessment consistent with asset and other relevant risk management procedures, and the
identification of commensurate treatments. Risk registers are updated.
• There are clear accountabilities and procedures for investigation of incidents, including escalation of incidents and
reporting in line with mandatory and other requirements.
• Timely Stakeholder communication is evident in all fault and incident responses.
• There are appropriate controls for ensuring that treatments are carried out and for closing-out actions, including the
monitoring of treatments and their effectiveness.
• Fault and incident response processes are continually improved through experience and the systematic use of asset
information, demonstrated by reduction in repeat faults/incidents and/or their severities.

The Institute of
Asset Management
Fault & Incident Response

Context: Detection, diagnosis and response to unplanned events, including the management of resources and activities required
in both short term and longer term to remedy the situation, minimise consequences and review/actions from lessons learnt. These
processes may include:
• Competent Labour
• Spares
• Special tools and equipment
• Data and Information
• Communications
This includes the Integration of the response plans across the organisation and ensuring the cause of failure is effectively captured to
allow subsequent analysis of failure data.

a) Investigation and treatment of faults and incidents including ‘near misses’ and preventive treatment.
Monitoring of risk and opportunity actions, including the effectiveness of treatment.
b) Continual improvement building on experience and the systematic use of asset information.
c) A clear understanding within the organisation of how it compares to others and the ability to demonstrate measurable benefits
against corporate objectives.
d) Risk management hazard zones may be put in place around similar assets whilst investigations proceed on major impact incidents.


Management Response
Procurement and resourcing 35. Assets Performance

& Health Monitoring
Chain Management
Other related subjects

30. Risk Assessment & Management
32. Contingency Planning & Resiliency Analysis
35. Asset Performance & Health Monitoring

The Institute of
Asset Management
21. Asset Decommissioning and Disposal

The processes used by an organization to decommission and dispose of assets due to ageing or changes in performance and capacity
requirements.
Maturity
Definition
Level
3 • Decommissioning and disposal is considered as part of lifecycle cost and benefit analysis at all relevant stages of
lifecycle management.
• Decommissioning and disposal activities are effectively planned, including the integration with other planning activities
(such as human resource planning)
• Decommissioning and disposal processes are defined, documented and consistently applied.
• The organisation ensures records are made available to demonstrate the processes are being followed.
• Decommissioning processes ensure that asset information is updated and that all interfaces to assets that remain in
service are managed.
• Documented asset information is kept for an agreed period beyond disposal of asset, in line with requirements and as
defined in the organisation’s records retention policy.
ISO 55001 clauses.
5 • The organisation has a decommissioning and disposal strategy for assets proportionate to the criticality of the assets
and these end-of-life activities.
• The organisation is proactive in investigating and realising innovation in asset decommissioning and disposal and has
implemented leading practice wherever possible.
• The organisation benchmarks itself against comparable organisations and can demonstrate a leading position in the
management of asset decommissioning and disposal.
• The organisation has processes in place that ensure that asset management decisions are assessed to determine their
impact on decommissioning and disposal.
• When an asset is to be re-used (internally or through transfer to another organisation) then all relevant and permissible
asset information is identified and transferred to the new manager of the asset.
• Decisions about decommissioning and disposal options, and their optimal timing, use cost, risk and performance
criteria, the consideration of life extension alternatives and any residual risks following decommissioning.
• Financial planning, valuations and depreciations take account of, and are aligned with, decommissioning and disposal
timings.
• Asset decommissioning and disposals are reviewed against asset life cycle plans and AM objectives to improve future
strategies and plans.
• The organisation has a systematic process and strategy for identifying opportunities where equipment can be recycled
or re-used (e.g. management of obsolescence)

The Institute of
Asset Management
Asset Decommissioning and Disposal

Context: Asset Decommissioning & Disposal develops and applies processes to decommission and dispose of assets due to ageing,
obsolescence, legal compliance, changes in performance, capacity or functional requirements. It also includes the integration of
Asset Decommissioning and Disposal plans with other planning activities (e.g. environmental management, financial plans, capital
investment plans, human resource plans etc.).
This processes include consideration of optimal timing and methods for decommissioning and disposal, based on whole life cycle
costs, risks and benefits. Factors to be considered will also include asset rationalisation opportunities, spares scavenging, recycling,
financial recovery options (e.g. selling), environmental, social and reputational impact of disposal methods, and post-disposal/
decommissioning residual risks and liabilities.

a) Organisation can demonstrate where they have adopted innovative ideas or technologies to improve decommissioning/disposal
plans and processes. e.g. an automotive company is aware of new environmentally-friendly materials and requests suppliers to
use them wherever possible to simplify eventual disposal of assets in the future.
b) Changes to organisational or regulatory requirements are actively monitored to assess their impact on existing plans for the
decommissioning / disposal of critical assets and systems. e.g. a chemical company with 1950’s buildings regularly reviews
current legislation for the disposal of hazardous substances (such `as asbestos, chemicals, etc.) to check their current disposal
plans & budgets are valid and accurate.
c) Asset data or knowledge that has potential future value to the organisation (or new owner) is retained after an asset has been
decommissioned/disposed of.
d) The organisation carefully monitors the accuracy and validity of their asset decommissioning / disposal plans and ensures that
all staff and service providers are adhering to them. e.g. managers of a nuclear power station validate how a sub-contractor
is planning to demolish part of the turbine hall to ensure it aligns with the overall plan for decommissioning the station.


Management Response

Chain Management

08. Life Cycle Value Realization
32. Contingency Planning & Resiliency Analysis
33. Sustainable Development

The Institute of
Asset Management
22. Asset Information Strategy

The strategic approach to the definition, collection, management, reporting and overall governance of asset information necessary to
support the implementation of an organisation’s asset management strategy and objectives.
Maturity
Definition
Level
3 • The organisation determines what asset management information is required to support its assets,
management of assets, the AM System and organisational objectives.
• The organisation has a documented Asset Information Strategy that is consistent and aligned with the SAMP.
• Development of the strategy considers:
• the significance of identified risks on information requirements.
• information required to support key decisions required within asset management processes,
procedures and activities.
• the exchange of information with stakeholders, including service providers.
• how and when information is to be collected, analysed and evaluated.
• impact of quality, availability and management of information on its’ organisational decision-making.
• The strategy defines the quality required of asset information.
• The strategy is designed to ensure there is appropriate traceability and consistency between financial
and non-financial information relevant to asset management to the extent required to meet its legal,
regulatory and stakeholder requirements and organisational objectives.
• The strategy contains objectives relating to proposed improvements in asset information that are SMART including the
identification of gaps between the currently available information (including its quality and accuracy) and that which is
required.
• The strategy identifies the processes that are required to manage asset information and assure its quality, along with
their governance, including responsibilities and accountabilities, and any programmes to improve these processes.
• The strategy contains information system business requirements necessary to support the organisation’s business
processes and information needs.
• The strategy includes processes to ensure asset information retains alignment to needs as the organisation’s
requirements evolve including migration of data and users from existing systems to new systems.
• The requirements are determined for aligning terminology (financial and non-financial) relevant to asset management
across the organisation.
ISO 55001 clauses.
5 • The asset information strategy is developed through consultation with those responsible for acquiring, managing,
delivering and using the data and information.
• The information strategy includes selection and application of appropriate asset information standards and systems
(and rates of change in available technology).
• The strategy requires optimisation of costs, risks and performance of asset information systems, including the
alignment and integration of systems.
• The strategy includes integrated asset management processes that consider and optimise requirements for the
collection, management and use of asset information.
• Strategies for collecting data are evaluated for their costs, risks and benefits.
• There is demonstrable benchmarking or similar comparison with leading asset management organisations.

The Institute of
Asset Management
Asset Information Strategy
Context: An Asset Information Strategy describes how asset information will support the delivery of the Asset Management Strategy,
Objectives and plans. It also covers what Asset Information Systems and governance processes are necessary to capture, hold and
deliver asset information.
An Asset Information Strategy may include:

• Policies relating to asset information;
• Asset information requirements to support decision-making and operational processes, including the data quality and accuracy requirements;
• A gap analysis of available versus required information, including data quality and accuracy;
• An analysis of the costs and benefits of closing this gap;
• Processes for updated alignment of these needs as the organisation’s requirements evolve;
• Responsibilities and accountabilities for information management;
• Alignment and interfaces to other information management strategies;
• The information system requirements necessary to support business processes and information needs;
• Strategies and processes for the improvement of asset information and data quality;

a) The asset information strategy is integrated with the relevant business processes and enabling technology.
b) The strategy includes optimisation and continual improvement processes. e.g. analytics are used to identify areas where data
collection needs to be improved in relation to usage dependency.
c) Proactive investigation and implementation of innovative solutions. e.g. an oil and gas company funds research and development
to exploit the latest methods for processing vast quantities of data.
d) Evidence of successful implementation of asset information strategy and plans demonstrate management commitment.
e) A clear understanding within the organisation of how it compares with others and the ability to demonstrate benefit realised
from its asset information strategy.
f) The information strategy forms the primary basis for IT investments.
g) A major infrastructure investment project specifies information requirements using the BIM standard to ensure that configuration
and management of information is assured throughout the asset life cycle.
h) The strategy clearly shows how different departments and teams within the organisation are required to collaborate in order to
get maximum value from asset information.
24. Asset
Information
Systems
22. Asset
Information
Systems
23. Asset 25. Data &
Information Information
Standards Management

The Institute of
Asset Management
23. Asset Information Standards

The specification of a consistent structure and format for collecting and storing asset information and for reporting on the quality and
accuracy of asset information.
Maturity
Definition
Level
3 • The organization has developed standards and guidelines to ensure a consistent approach to the recording of asset
information to meet the asset information needs defined in the Asset Information Strategy.
• The information structure has a hierarchy for assets, and enables the recording of their physical location.
• There are definitions for the attributes required for asset information, including acceptable values and quality criteria.
• The information structure enables collection of data on asset utilisation, condition and performance, incidents and
non-conformities and describes how these should be recorded in order to support strategic Asset Management
planning, improve service and reliability, support long and short term planning activities and help determine overall
asset lives and intervals between intervention activities.
• The organization has defined the quality and accuracy that is required for all asset information.
• The organization has defined how the quality and accuracy of all asset information is to be assessed.
ISO 55001 clauses.
5 • The organisation can demonstrate appropriate and proportionate application of asset information standards.
• Asset information standards define what is needed, to what quality, for what purposes and how it is to be obtained
and stored.
• Common definitions, referencing and an aligned data structure are used for data across all information systems.
• Specification of the information requirements is aligned to the criticality of assets and the value of such information.
• Asset data and information standards are determined with recognition of how the data will be collected and used
(e.g. human interface constraints)

The Institute of
Asset Management
Asset Information Standards

Context: Asset information management includes the development of standards and guidelines to ensure a consistent approach to
the recording of asset information in order to meet the information needs defined in the Asset Information Strategy. This includes
defining common methods for recording the following:
• The asset hierarchy, types, classes and identification criteria;
• Functional attributes of assets, and the acceptable values for these;
• Utilisation of assets and applicable constraints or controls;
• The geographical location of assets and systems context;
• Condition, performance or health attributes;
• Categories and recording asset defects, performance or condition data;
• Categories and recording of causes of asset failure;
• Categories and recording of consequences of asset failure;
Asset Information Management also includes the definition of the required quality and accuracy that is required for all asset
information including common methods for how quality and accuracy is defined and assessed.

a) Adoption of published asset information standards (e.g. ISO 8000, PAS 1192, ISO 14224, BIM)
b) Data architecture and information specifications are developed using structured methods (such as LDM) and optimised to the
criticality of assets and the value of the asset information.
24. Asset
Information
Systems
22. Asset
Information
Systems

The Institute of
Asset Management
24. Asset Information Systems

The asset information systems an organization has in place to support the asset management activities and decision-making processes
in accordance with the Asset Information Strategy.
Maturity
Definition
Level
3 • The organization has identified the necessary asset information systems and architecture required in order to
collect, store, process and analyse the asset information to manage its assets over their life cycle and deliver the Asset
Information Strategy.
• The organization has an Asset Information Systems implementation plan and migration plans (when required), which
include governance arrangements.
• The organization has implemented, in accordance with the organisation’s IT strategy, the systems required in order to
deliver the Asset Information Strategy.
• There is consideration of the optimum mix of software applications, taking account of the size and complexity of
the organization and the regulatory environment it operates in. This includes an analysis of the costs and benefits of
implementing new or updated asset information systems; evaluation of how systems can be used to automate
business processes; an assessment of compatibility between existing business processes and IT solutions.
• The organization has clearly defined system ownership responsibilities.
• The asset information system contains a robust reporting system.
ISO 55001 clauses.
5 • Components that make up the asset information systems (e.g. data, software, processes, dashboards, etc.) are fully
aligned to the Asset Information Strategy and integrated across the asset management system.
• Governance of asset information and the asset information system is embedded in to the overall business governance
model.
• The organisation demonstrates collaboration and sharing processes for knowledge/experience/insights amongst Asset
Managers and stakeholders.
• Asset information systems and the processes that use them, are efficient and aligned to the needs of their users.

The Institute of
Asset Management
Asset Information Systems

Context: Asset Information Systems includes the provision, operation and maintenance of all Asset Information Systems necessary to
satisfy the information requirements defined in the Asset Information Strategy. Asset Information Systems includes consideration of the
following;
• The asset information systems and architecture necessary to satisfy the information system requirements defined in the Asset
Information Strategy;
• Analysis of costs and benefits of implementing new or updated asset information systems;
• An evaluation of how systems can be used to automate business processes;
• An assessment of whether to acquire ‘vanilla’ generic solutions, to modify/update existing systems or to customise/develop bespoke
solutions;
• How the information systems will be implemented, maintained and updated, including governance arrangements.
• An obsolescence and technology migration plan to ensure business continuity and control costs and risks;
• Clearly defined ‘ownership’ responsibilities for information systems and the data contained in them.

a) Asset information systems are integrated across the asset management system and provide stakeholders with a ‘single source of
truth’. e.g. data collected by operations is available to other departments that may need it when making decisions.
b) Asset information systems are consistently providing stakeholders with the data they require in a) an appropriate format and b)
a usable time-frame. e.g. asset health indices are used by various levels of the organisation to give a summary of the condition
of the asset portfolio.
c) A clear understanding within the organisation of how its information systems compare to others and the ability to demonstrate
that its information systems provide added value to the organisation, including the quantification of benefits and the
management of risk.
d) Artificial intelligence and data analytic techniques are used in processing data to derive information (e.g. pattern recognition in
alarms management or asset condition diagnostics).
24. Asset
Information
Systems
22. Asset
Information
Systems

The Institute of
Asset Management
25. Data & Information Management

The data and information held within an organization’s asset information systems and the processes for the management and
governance of that data and information.
Maturity
Definition
Level
3 • There are governance processes to provide assurance that information is consistent with the quality and accuracy
requirements defined in the Asset Information Strategy and asset information standards.
• There are data collection and maintenance plans to address any information gaps identified in the Asset Information
Strategy.
• There are processes to ensure provision of asset information resulting from asset interventions.
• Suitable controls are incorporated into the business decision making process to ensure data of the required data
quality is used to inform the decision.
• Processes and governance for managing information are specified, implemented and maintained.
• There are processes and systems in place for the storage and preservation, distribution, access, retrieval
and use of data and information to ensure that required information is available and suitable for use,
where and when it is needed.
• Information is adequately protected, including from loss of confidentiality, improper use or loss of
integrity.
• There are processes in place for the control of changes to data and information
• There are processes and systems in place for the retention and disposition of data and information.
• Documented information originating from outside the organization and determined to be necessary
for asset management activities is identified and controlled.
ISO 55001 clauses.
5 • The organisation can demonstrate consistent application of the strategy and standards for the life cycle management
of asset data and information (including internal and external sources and structured, unstructured data and tacit
knowledge/expertise).
• Data and information is collated through accessible systems and synchronized to provide a ‘single source of truth’
across the organization. The organisation can demonstrate it is proactive in managing data quality and that it has
researched and implemented leading practices.
• Asset information management (AIM) takes into account human factors (culture, motivation and competencies).
The AIM processes and practices are demonstrated as best in class by benchmarking with comparable asset
management organisations, or by recognition through relevant awards or citations.
• The organisation can demonstrate that methods used for AIM are the most cost-effective available.
• AIM can show continual improvement in the value created by collection and usage of asset information.

The Institute of
Asset Management
Data & Information Management

Context: Data and Information includes both the data held within an organisation’s asset information systems and the knowledge
held by the organisation’s workforce. It also covers the quality and accuracy of such data and knowledge, in relation to Asset
Information Standards.
Data and Information Management includes the understanding and coordination of data/information/knowledge sources, ‘owners’,
users, validation processes and the life cycle of useful value of the data/information/knowledge. This includes the data collection,
maintenance and renewal processes in line with the Asset Information Strategy, particularly where a gap is discovered in the
organisation’s current asset information. Data and Information Management also includes the governance processes for providing the
required level of assurance that the data and information is fit for purpose and is consistent with the Asset Information Standards.
Knowledge management techniques

a) Decision processes systematically exploit a mix of structured and unstructured data (e.g. tacit knowledge).
b) People know where to go to get specific data for specific decisions and are aware of the quality constraints.
c) Data sources are clearly documented and every piece of data has an ‘owner’.
d) The meaning, role and significance of Resnikoff’s conundrum and Black Swan events are understood.
e) Integration between systems is ‘two-way’ and information is shared across the organisation and displayed in different formats
and media. e.g. an oil field uses geospatial information to identify the location of wells (for operations), and maintenance uses
the same data for transport, resourcing and logistics planning.
f) The organisation shares and benchmarks asset information to enable continual improvement, both within the organisation and
with others (e.g. Participation in industry benchmarking groups).
g) Demonstration of how the organisation is leveraging quantified value from asset information and can quantify the business
impact of uncertainty or missing information.
h) A clear understanding of how the organisation compares to others and the ability to demonstrate that information
management delivers added value to the organisation, including quantification of benefits and management of risk.
i) The organisation evaluates the potential future needs and uses of data, based on pre-consideration of the potential value in
relation to the collection and retention costs and life cycle of the data validity.
j) Data validation, cleaning and data mining methods are routinely used to understand and improve data.
k) Asset performance, life cycle and degradation/risk/failure modes data is communicated from one life cycle phase to the
subsequent phase through a rigorous hand-over process.
l) Master Data Management methods are used to ensure the single source of truth
m) Tacit knowledge capture methods are used to obtain knowledge from experienced personnel leaving the organisation.
24. Asset
Information
Systems
22. Asset
Information
Systems

The Institute of
Asset Management

The management and development of supply organizations to deliver an organization’s Asset Management objectives.
Maturity
Definition
Level
3 • The organization identifies Asset Management activities that are appropriate for outsourcing and those which should
remain in-house.
• The organization provides the resources required for meeting the Asset Management Objectives and for implementing
the activities specified in the Asset Management Plans, including outsourced activities.
• Where the organization develops processes and sets objectives for outsourced Asset Management activities these
are fully aligned with the Strategic Asset Management Plan and Asset Management Objectives, the Asset Management
System and other internal processes.
• The organization establishes risk and opportunity management processes that ensure outsourced processes and
activities are controlled and are integrated with the Asset Management System.
• Responsibilities and authorities for the management of outsourced activities are clearly defined and documented.
• The organizational resourcing strategy includes the selection of appropriate service providers and the development of
clear criteria and service levels.
• The organization specifies and clearly documents the requirements, scope, and the means for information and
knowledge sharing for outsourced activities.
• The organization ensures that outsourced activities meet requirements of competency, awareness and documentation
consistent with Asset Management System requirements.
• The organization establishes and implements contracts with appropriate incentive schemes, and actively builds
sustainable, long-term relationships with suppliers.
• The organization ensures that the performance of outsourced activity is adequately monitored through the
establishment of appropriate performance indicators.
• The organization monitors commercial circumstances and ownership structures of service providers and suppliers to
ensure relationship viability and longevity.
• The organization establishes processes for minimizing risk when transitioning from one supplier to another.
ISO 55001 clauses.
5 • Procurement decision-making incorporates life cycle costs and risk assessment to evaluate and compare options.
• Technical specifications consider life cycle costs, risks and performance interactions and the achievable economic life
of the assets being procured.
• Procurement strategy enables and supports, where appropriate, the development of long-term supply chain
relationships, partnerships and framework agreements to deliver greater value.
• The procurement of assets and support resources (e.g. spares, consumables, services etc.) is not seen as the sole
responsibility of a dedicated functional group: all relevant parts of the organisation are appropriately involved.
• An independently validated risk-based approach is used determine the optimal level of critical spares and stocked
materials and these are reviewed on a regular basis.
• Supply chain relationships are fully transparent, and are managed with appropriate performance monitoring, continual
improvement processes and change management, linked directly to the organisation’s planning processes.
• Through collaboration and trust, both the organisation and its service providers feel that they are getting a good deal.

The Institute of
Asset Management
Procurement & Supply Chain Management

Context: The activities necessary to create, manage, maintain and govern relationships with service providers, contracts and suppliers.
Procurement & Supply Chain Management includes outsourcing/ insourcing strategies, definition of requirements, appraisal & selection
of contractors/ suppliers, negotiations, contractual terms development and implementation, relationship management, change control
and claims management. Procurement & Supply Chain Management needs to align with corporate policies and strategies, and to
demonstrate added value compared to alternatives for provision of goods or services.
Procurement & Supply Chain Management typically also includes:

• Selection criteria for service providers
• Standardized contracting processes
• Mechanisms for monitoring and ensuring contract compliance
• Communications and collaboration processes with service providers
• Warehousing, inventory and materials management
• Monitoring & review of supplier performance.

a) An organisation controls the number of key suppliers and has, where appropriate, developed long term, shared risk/reward
relationships with them. This has resulted in an optimal buyer / seller relationship i.e. mutual commitment to defined value
goals, open sharing, innovation, corrective actions etc.
b) New technology migration, procurement and support strategies are in place for the management of obsolescence and assured
supply of appropriate products and services.
c) A clear understanding within the organisation of how it compares to others and the ability to demonstrate that the
management of procurement and the supply chain have yielded measurable benefits against corporate objectives.
d) Where relevant, alternative inventory and procurement options (e.g. pooling, bonded, consignment or supplier-held stock etc.)
are used to ensure that required items can be sourced in an acceptable time-frame and that further optimisation can take place.

17. Asset Operations
14. Maintenance Delivery 18. Resource Management
Chain Management
25. Data & Information Management

The Institute of
Asset Management
27. Asset Management Leadership

The leadership of an organisation in promoting a whole-life asset management approach to deliver the organisational and Asset
Management objectives of the organisation.
Maturity
Definition
Level
3 • Top management demonstrate leadership and commitment to Asset Management by ensuring Asset
Management Policy, Strategic Asset Management Plan and Asset Management Objectives are
established and are aligned to the organisational objectives.
• Top management ensures the Asset Management System requirements are integrated into business
processes and that the Asset Management System achieves intended outcomes.
• Top management ensures resources for the Asset Management System are available and actively directs
and supports people to contribute to effective Asset Management.
• Leaders support and influence staff to deliver the Asset Management Strategy and objectives of the organization.
• Leaders communicate the importance of asset management and Asset Management System requirements
in a clear and concise manner.
• Top Management actively promotes cross-functional working and supports leadership in Asset Management.
• Leaders demonstrate, by their behaviour, commitment to values and principles of Asset Management set out in the
Asset Management Policy, Objectives and Strategic Asset Management Plan.
• Top management ensures alignment and integration of asset risk into the organisational risk
management system.
• Leaders promote continual improvement.
• Leaders are responsible for ensuring that Asset Management decisions are taken by the relevant role.
• Top management provides stakeholder confidence of the direction being taken and benefits that will be achieved.
• Top management and leaders endorse all key Asset Management System documentation.
• Top Management and leaders identify the interfaces between Asset Management activities and other organizational
activities.
ISO 55001 clauses.
5 • Leaders promote and support good asset management practices, and consistently demonstrate role-model behaviour
in line with such practices,
• Leaders define and ensure usage of consistent decision-making methods that seek optimal life cycle value from assets
in preference to localised or short-term vested interests.
• Leaders promote innovation as a means of enhancing value; they are open to change and supportive of value-
enhancing improvements.
• Top Management encourages openness and transparency about the organisation’s asset management performance
and practices when benchmarked against other comparable organisations.

The Institute of
Asset Management
Asset Management Leadership

Context: Leadership creates vision and purpose, and then inspires and supports people to achieve them. High performing leaders
are consistent in demonstration of desired behaviours (leading by example), communicating organisational values and encouraging
teamwork. Such leadership and sustained commitment from all levels of management are essential for establishing, operating,
maintaining and improving asset management.
Asset Management Leadership covers the establishment and reinforcement of effective leadership, with clear responsibilities and
accountabilities, and the leadership style most suited to maximise value in the organisation’s Asset Management. It also includes
the interfaces, communications and cross-disciplinary collaboration necessary between leadership roles in decision-making and
determination of priorities.

a) All levels of the organisation ‘live and breathe’ asset management principles and know that they are working towards the same
objectives.
b) Focus on long-term strategic goals is reinforced through decision-making that is based on asset life cycle value.
c) The leadership regularly challenges current practices (even if they are believed to be good) as part of continual improvement
processes.
d) Evidence of the use of leadership-supported creativity and innovative solutions to leverage or enhance value.
e) Leaders ensure that the organisation fully understands its own performance relative to others and is able to focus on specific
worthwhile goals.
f) The organisation is independently recognised as an example of excellent leadership in asset management practices and
performance.
29.
Organisational
Culture
27. Asset
Management
Leadership
28. 30.
Organisational Competence
Structure Management

The Institute of
Asset Management
28. Organisational Structure

The structure of an organisation in terms of its ability to deliver the organisational and Asset Management objectives.
Maturity
Definition
Level
3 • The organization clearly understands its purpose and gives consideration to multiple factors (e.g. sector, product,
service, location, scale, customers and stakeholders) and whether assets and Asset Management are central to its
purpose or enablers.
• The organization considers both external and internal factors when designing an appropriate structure (e.g. social,
cultural, political, legal, regulatory, financial, technological, economic, environmental, internal governance, capability,
policies, strategies, objectives etc.)
• The organization designs and implements an appropriate organizational structure that clearly and unambiguously
identifies roles, authorities and responsibilities.
• Roles and responsibilities are sufficiently understood, communicated, maintained and updated as required.
• Top management assigns responsibility and authority for ensuring the adequacy, ongoing suitability
and effectiveness of the Asset Management System and ensuring that the Asset Management System
supports delivery of the Strategic Asset Management Plan.
• Top management assigns responsibility and authority for the establishment and update of the Strategic
Asset Management Plan, AM Objectives and AM Plans.
• Decision-making processes are clearly defined across the cross-functional organizational structure and management is
best placed to be a leader in taking key performance and reliability decisions.
• The organizational structure is resourced consistent with its roles, responsibilities and workload to enable effective
performance of the organization and delivery of Asset Management Objectives, statutory and stakeholder requirements.
• Competency requirements and training are aligned and consistent with the organizational structure.
• Individuals challenge the way of working to continuously improve the Asset Management System.
• Top management assigns the responsibility and authority for reporting the performance of the Asset
Management System back up to top management.
ISO 55001 clauses.
5 • The organizational structure is flexible and has designed roles, accountabilities, responsibilities and resourcing to
be enable effective performance, governance, clarity in communications and efficient delivery of asset management
objectives.
• The organisation’s organisational structure enables and promotes cross-disciplinary working, decision-making and
information sharing.

The Institute of
Asset Management
Organisational Structure
Context: The Organisational Structure determines how roles and responsibilities are assigned within an organisation and defines the
interdependencies and information flows that are necessary between different departments, functions and management levels. The
appropriate organisational design depends on a number of internal and external elements such as:
• Size, geographical spread and functional complexity of the organisation

• Ownership structure – private, government, public listed company
• Type of industry, products or services and regulatory environment
• Objectives and strategies of the organisation
• Maturity of the organisation – start-up or established business
• Diversity of the asset portfolio – single site, multiple discrete sites, networked, multinational
• Cultural context and background.
Different organisational structures include:

• Functional/discipline-specific departments;
• Regional/locational/asset system, centralised/decentralised structures;
• Matrix arrangements that combine discipline groupings with regional/system commitments.
Asset Management is a distinctively cross-disciplinary activity; departmental ‘silo’s’ or isolated regional units can create problems for
collaboration and alignment. So such structures are particularly dependent upon good leadership, communications, teamworking
behaviours and cultural attributes.

a) Individuals are encouraged and expected to work across functional boundaries to achieve their AM objectives.
b) Personal and team-based performance measures and reward mechanisms are directly related to criteria and measures of
organisational value.
c) Cross-disciplinary collaboration and networking is a natural feature of day-to-day operational activities.
d) The organisation can demonstrate that it adapts its structure in line with changing business needs and asset management
objectives.
e) Individuals and department leaders are empowered to effectively discharge their roles and responsibilities and specifically to
establish, update and deliver the strategic asset management plan.
29.
Organisational
Culture
27. Asset
Management
Leadership
28. 30.

The Institute of
Asset Management
29. Organisational Culture

The culture of an organisation in terms of its ability to deliver the organisational and Asset Management objectives.
Maturity
Definition
Level
3 • The organization identifies internal and external issues relevant to its purpose and considers these in
designing its Asset Management System.
• Every individual in the organisation perceives Asset Management as a good investment with positive long term
benefits.
• There is consistent self-discipline at all levels in the organisation as an observable habit.
• Top management proactively shapes organisational culture to ensure observed behaviours align with organizational
values, the Asset Management Policy, and achievement of Asset Management Objectives.
• The organization ensures roles and responsibilities are assigned and conducive to collaborative and cross-functional
Asset Management thinking.
• The organization has an embedded culture of risk management and all persons working under the
organization’s control are trained and made aware of the activities they are responsible for, the
associated risks and required controls, and opportunities are systematically captured and where
appropriate progressed.
• The organization considers and plans for the long term and values processes as well as outputs.
• Top management promotes collaborative and participative consultation to understand and address the cultural
challenges that the organisation faces.
• A clear chain of command and communication processes exist in the organization and everybody understands how to
escalate issues.
• The organization identifies and determines the aspects of culture that need to change and the pathway between
current and desired culture.
• The organisation actively identifies barriers and constraints for culture change and proactively plans to remove or
mitigate. The organization establishes effective processes for culture change and identifies the mechanisms of change
that are most effective.
• The organization is a ‘learning organization’ with consistency in understanding, behaviour and good practice.
ISO 55001 clauses.
5 • The organisation can demonstrate a culture (including values, behaviours and attitudes) that promotes employee
engagement, motivation and commitment to deliver the asset management objectives.
• Teamwork and collective responsibility are evident in cross-functional collaboration to deliver maximum total value,
even if this involves localised or short term disadvantage to individuals or groups.
• There is open and honest employee consultation and communication (formal and informal).
• Creativity and encouragement of innovation is evident at all levels in the organisation, within a structured continual
improvement process.
• Cultural attributes are regularly assessed and reviewed, including benchmarking against comparable organisations to
seek improvement opportunities
• The organisation’s culture includes an appropriate and consistent approach to risk-taking and risk management.
• There is evident and widespread pride in the organisation’s AM capabilities and performance, with a continued desire
to further improve.

The Institute of
Asset Management
Organisational Culture
Context: Culture is a complex phenomenon that includes, among other factors, shared values, behaviours, perceptions and societal
influences. It is a lens through which individuals see their world, shaped by context-dependent symbols, rules, values, habits and
myths, often maintained by rites and rituals.
There is no “standard” or “rulebook” for excellence in asset management culture, and yet workplace culture is often the distinctive
feature of excellence in Asset Management. The culture of an organisation fundamentally affects how decisions are made, how work
is performed, changes managed and creativity encouraged/recognised. The culture of a company affects what is possible to do, on
what timescales. It can be harnessed for positive outcomes or it can constrain organisational performance.
Organisational Culture covers the processes of defining, developing, sustaining and adapting a culture that supports the goals of
the organisation and will help to deliver the Asset Management objectives. Leadership, communications, education, consistent
reinforcement of desired values and behaviours are all involved in shaping such an organisational culture.

a) The organisation’s directional priorities, management decisions and strategic planning are understood, accepted and positively
supported throughout the organisation.
b) Open and honest employee communication and collaboration are supported by leadership at all levels (a ‘no-blame’ culture is
evident)
c) Observed behaviours are consistently and naturally aligned to the values of the organisation, AM Policy and delivery of the AM
objectives.
d) Consideration of short term actions includes, as a norm, consideration of longer term consequences, and vice versa.
e) Cultural measures and monitoring are used as part of the performance monitoring and continual improvement processes.
f) The organisation demonstrates a systematic migration from reactive to pro-active behaviours and interventions, at an
organisation-wide, cultural level with cross-disciplinary endorsement.
29.
Organisational
Culture
27. Asset
Management
Leadership
28. 30.

The Institute of
Asset Management
30. Competence Management

The processes used by an organization to systematically develop and maintain an adequate supply of competent and motivated people
to fulfil its asset management objectives including arrangements for managing competence in the boardroom and the workplace.
Maturity
Definition
Level
3 • The organisation establishes a Competence Management System which aligns all required asset management
competences to the roles and responsibilities identified within the organisation’s Asset Management System.
• The Competence Management System incorporates processes for identifying competency requirements
for asset management activities and assessing competence of resources both internal and external.
• The organization takes necessary actions to acquire competent persons and evaluates the effectiveness
of such actions.
• The Competence Management System is utilised to support the recruitment, development and training of all staff
within the Asset Management System.
• The organization ensures persons are competent on the basis of education, training and/or experience.
• The organization identifies appropriate activities to address any gaps in competence.
• The organisation retains appropriate documented information as evidence of competence, for both
internal and outsourced resources.
• The organization periodically reviews current and future competency requirements.
• The organization proactively forecasts competence requirements to support the development of the Asset
Management System and the delivery of the Strategic Asset Management Plan.
ISO 55001 clauses.
5 • Organisation is able to demonstrate that it has an integrated competence management system, covering in-house
and contracted resources, is aligned to its short, medium and long term asset management objectives.
• Organisation has competent staff availability at all levels and gaps are easily identified with alternative resourcing
strategy in place.
• Organisation has effective succession planning process at all levels.
• Organisation has alignment between asset management competence, technical competence and corporate objectives.

The Institute of
Asset Management
Competence Management
Context: Competence Management ensures that individuals are capable of perform their work responsibilities to the standard that is
required. It covers both practical and thinking skills, supported by adequate knowledge and insights relevant to the activities that need
to be performed. It also accommodates personal attributes, attitudes and beliefs.
Because asset management is a cross-disciplinary activity, it requires people who are not only competent at their individual tasks but
also understand, and are capable of effective collaboration with others, having complementary responsibilities. Personal productivity,
‘ownership’ and commitment is often much higher if the individual understands not just how to perform a task, but also why it is
needed in the first place.
A strategic approach to managing organisational competence covers the assessment, development and assurance of both individuals
and the whole organisational. It considers immediate needs and future expectations, including recruitment, training, professional
development and the competency requirements of service providers.
Competence management is typically organised into a structured framework, tailored to the organisation or occupational group for
defined roles and required capabilities. Effective frameworks also include definitions of input dependencies, output measures and
desired behaviours.

a) The planning, coordination and delivery of competences for asset management are traceably aligned to the organisation’s
b) The organisation’s competence framework is benchmarked against that of comparable organisations and shown to be a class
leader in effective identification of needs, development of competencies and assurance of adequate competencies for the roles
and responsibilities in asset management.
c) Competence definitions are not limited to functional activities but include cross-functional capabilities such as communications,
teamwork and life cycle value understanding. e.g. in manufacturing industries, operators are trained to carry out ‘first line’
maintenance and inspection tasks.

18. Resource management
29.
Organisational
Culture
27. Asset
Management
Leadership
28. 30.

The Institute of
Asset Management
31. Risk Assessment and Management

The policies and processes for identifying, quantifying and mitigating risk and enhancing opportunities.
Maturity
Definition
Level
3 • Top management ensures that the management of asset management risks is aligned the organization’s
risk management approach.
• The organization’s approach to risk and opportunity assessment and management ensures compliance with legal,
statutory requirements and is consistent with stakeholder requirements and expectations.
• The organization assesses the risks and opportunities associated with outsourcing any activities that
can have an impact on the achievement of its asset management objectives.
• The organization determines the risks and opportunities to be addressed to:
a) enable the asset management system to achieve its required outcomes
b) prevent or reduce undesired effects on the asset management system
c) continually improve the asset management system
• The organization assesses how these risks and opportunities can change over time.
• The organization creates and carries out action plans to address the risks and opportunities and
integrates the actions into its asset management processes.
• The organization evaluates the effectiveness of its actions to address risks and opportunities.
• The organization has documented risk management processes for assets and asset management activities to:
a) Identify and assess risks and opportunities;
b) Identify the criticality of assets with respect to achievement of asset management objectives;
c) Select and implement appropriate treatments for risks and opportunities;
d) Monitor these treatments and their effectiveness;
• The organization ensures that staff carrying out risk and opportunity assessment are competent to perform the activity.
• The organization documents its risks in a way that supports the identification, recording, evaluation, ranking/
prioritizing, reporting, review, updating and archiving of risk records.
• The organization manages risks and opportunity arising from the management of change, and assesses
risks which can impact on achievement of objectives before the change is implemented.
• The organization includes the treatment and monitoring of risks and opportunities in its processes for
operational planning and control.
• The organization evaluates and reports on the effectiveness of its processes for managing risks and opportunities.
ISO 55001 clauses.
5 • Risk management includes the escalated or combined significance of multiple risks and risk interactions.
• Risk and opportunity assessment processes and quantification methods are aligned, calibrated and consistent for
different risk types.
• Quantified risks, and how these change with time, are used in decision-making criteria and in the prioritisation of asset
management activities.
• Documented asset-related risk management processes include definition of the organisation’s unacceptable level
of risk, the requirements for risks to be managed to ALARP levels, and the requirements for disproportionality in the
management of low probability, very high consequence events.
• Risk management processes can be shown to use best available information including from other organisations and
industries. Uncertainty in such information is incorporated into risk quantification and risk-based decision-making processes.
• The risk management processes are shown to be class leaders by benchmarking against comparable Asset
Management organisations, or by relevant recognition such as awards or citations.
• The organisation can demonstrate it is proactive in investigating and realising innovation in this area, and that it has

The Institute of
Asset Management
Risk Assessment and Management

Context: Risk Assessment and Management describes policies and processes for the identification, assessment, analysis and treatment
of risks and opportunities. Risk Assessment and Management is common to all subjects within the Asset Management Landscape.
The management activities within the scope of this subject are:
• Generation of Risk Management Policies

• Development of Risk Management Processes
• Execution of Risk Management Processes
• Alignment of strategic, tactical and operational risks and risk registers

a) The Enterprise Risk Management system coordinates the management of risk from multiple sources, i.e. hazards, financial,
operational, and strategic, including asset-related and asset management-related risks.
b) The Asset Management system incorporates management of all asset-related and all life cycle activity-related risks e.g. hazards
group links to scope & effectiveness of Integrity Management System, Safety Integrity Level (SIL) standards, Instrument
Protective Function (IPF), Risk Based Inspection (RBI) etc. These requirements are incorporated into Asset Management planning
process and SAMP.
c) Utilisation of best available risk information to support decision making processes, including that from other organisations and
industries.
d) The process for risk quantification and analysis makes effective use of asset information.
Processes for the management of risk are proportionate to the scale and nature of the risk by applying asset criticality and
ALARP (gross disproportion) considerations to the Asset Management process.
e) Existence of formal coordination between Integrity management systems, e.g. PSM processes, etc., for low probability and high
consequence events, to manage the asset-related and life cycle activity-related risks by applying ALARP (gross disproportion) principals.
f) Efficient, effective and integrated management of risk is used in all Asset Management activities.
Risk management that supports predictive and proactive management of risk for the asset-related and life cycle activity-related risks.
g) Sharing and communication of all types of risk information with other organisations.
h) A clear understanding within the organisation of how it compares to others and the ability to demonstrate that the
management of risk and opportunity has yielded measurable benefits against corporate objectives. Risks are considered and
managed consistently individually and collectively (e.g. at portfolio level)

Related subjects
02. AM Strategy & Objectives
32. Contingency Planning & Resilience Analysis
34. Management of Change

The Institute of
Asset Management

The processes and systems put in place by an organization to ensure it is able to continue to either operate its assets to deliver the
required level of service in the event of an adverse impact and maintain the safety and integrity of the assets.
Maturity
Definition
Level
3 • Top management ensures that the management of asset management risks is aligned with the
organization’s risk management approach including contingency planning.
• The organization has considered and evaluated asset and other risks (internal and external) that impact on the
capability of assets to deliver the required continuity of business functions under adverse conditions.
• The organization has established processes to proactively identify potential failures in asset performance
and evaluate the need for preventive action addressed through contingency plans.
• The organization’s operational planning and control processes include documented contingency management
processes for the risks that have been identified that this is appropriate.
• Contingency plans and/or procedures include information on:
a) establishing levels of command and person in charge for each event type
b) responsibility matrix and escalation criteria
c) the provision of resources, and the maintenance of any equipment, facilities or services that could be required
during disruptions, incidents or emergency situations;
d) identifying required support organisations, with their specified responsibilities, needed for each type of event
(or phase of an event), including contact details;
e) contacts and arrangements for internal and external communication;
f) how critical asset management activities will be maintained or restored in the event of disruption;
g) recording of essential information whilst responding to, and managing, incidents and emergencies;
h) the process for returning to normal operations.
• The organization tests its contingency plans on a regular basis, as far as is reasonably practicable, and implements
the appropriate lessons learned.
• The organization seeks continual improvement of its contingency planning
ISO 55001 clauses.
5 • The organisation can demonstrate it is proactive in investigating and realising innovation in this area, and that it has
• There is evident periodic review and evaluation of new or changing risks that require an update to contingency plans.
• The organization’s resilience plans take account of combined changes in multiple factors, e.g. supply and demand
changes, climate change etc.; asset/asset system choices mitigate these risks.
• Contingency plans are integrated with disaster management plans managed by Municipal/Governmental authorities.
• Contingency plans are periodically stress-tested (if appropriate, in conjunction with authorities’ disaster management
plans) to review and improve the plans.
• Contingency plans that enable proactive management and response in advance of emergency, by making use of
available knowledge, intelligence sources and general information.
• The operational environment is proactive monitored for developing situations so that warning signs can be escalated
to management and contingencies made available.
• Excellent contingency planning & resilience analysis is demonstrated by benchmarking or similar comparison with other
leading Asset Management organisations, or by relevant recognition such as awards or citation.

The Institute of
Asset Management
Contingency Planning & Resilience Analysis

Context: Establish the required procedures and documents to guide the person in charge of the assets during the event to take the
appropriate decisions in such critical times based on well prepared and tested scenarios.
These documents will typically include:
• Identifying the various events, incidents, and disasters
• Establishing the level of command and the person in charge of each event type
• Identifying the required support organisations with their specified responsibilities during each type of event
• Classifying the events and the recommended actions according to each type of event
• Reference to all needed contacts required during all possible scenarios.
All the possible scenarios need to be put to test during regular times to evaluate both the processes put in place and the reaction of
personnel during these adverse events.

a) Identification and evaluation of significant new or changing risks that require contingency management.
b) Stress testing and modelling of contingency plans.
c) Proactive monitoring of situations that can escalate to contingencies including effective communication and liaison mechanisms.
d) Contingency plans that enable proactive management and response in advance of emergency, making use of available
knowledge and intelligence.
e) Simulation modelling (where justified by nature and scale of risks).to establish contingency budgets.
f) A clear understanding within the organisation of how it compares to others and the ability to demonstrate that the
management of contingencies have yielded measurable benefits against corporate objectives.
Related subjects

The Institute of
Asset Management

The interdisciplinary, collaborative processes used by an organisation to ensure an enduring, balanced approach to economic activity,
environmental responsibility and social progress to ensure all activities are sustainable in perpetuity.
Maturity
Definition
Level
3 • The organisation determines the external issues that are relevant to its purpose, including its environmental, social and
financial impacts.
• The organisation determines the requirements and expectations of stakeholders with respect to the environmental,
social and financial impacts of its asset management activities.
• The organization demonstrates that it takes account of the external issues and stakeholder requirements related to
environmental, social and financial impacts in the development of its AM policy, AM objectives, SAMP and AM plans.
ISO 55001 clauses.
researched and implemented leading practice to enable:
- Proactive use of innovative solutions
- Evaluation of operational issues to include relevant consideration of sustainability implications
Such leading practices are demonstrated by benchmarking or similar comparison with leading asset management
organisations, or by relevant recognition such as awards or citation

The Institute of
Asset Management
Sustainable Development
Context: Sustainable Development entails ensuring that all Asset Management processes support the organisational sustainability
framework. This entails integration of the Asset Management strategy, policy and plans with organisational strategic plans and
activities and stakeholder needs.
It ensures appropriate systems are put into place to collect and collate information needed to manage assets across their whole life
cycle. Factors to be taken into account in these processes include:
• Environmental Impact of Asset Management Plans
• Social Impact of Asset Management Plans
• Financial Impact of Asset Management

a) Ability to model and quantify impact of choices on future measures of environmental or social performance.
b) Proactive use of innovative solutions in managing sustainability
c) A clear understanding within the organisation of how it compares to others and the ability to demonstrate that the
management of sustainability have yielded measurable benefits against corporate objectives or mitigated corporate risk.
Related Subjects
39. Stakeholder Engagement

The Institute of
Asset Management

The interdisciplinary, collaborative processes used by an organisation to ensure an enduring, balanced approach to economic activity,
environmental responsibility and social progress to ensure all activities are sustainable in perpetuity.
Maturity
Definition
Level
3 • The organisation has documented policies & processes for dealing with changes to physical assets, asset management
processes and the supporting resources.
• The organization carries out risk and opportunity assessment on any planned change that can affect the
delivery of asset management objectives prior to the implementation of the changes.
• The management of risks associated with changing assets or asset management activities is consistent
with the organisation’s documented risk management processes.
• The organization controls planned changes and reviews the unintended consequences of the changes as
required.
The organization mitigates adverse effects as required.
• Records are available to demonstrate that change management processes and plans are followed.
ISO 55001 clauses.
researched and implemented leading practice.
• The change management process includes review of the effectiveness of the change management and in particular
reviews any unintended consequences of the change and takes action to mitigate adverse effects.
• Change management takes account existing controls and asset criticality, and is an efficient and effective process.
• Quantified risk assessment is used for change management.
• Change management processes allow escalation and ensure risks associated with changed are identified and managed
across organisational boundaries and corporately.
• Change management processes include appropriate and effective embedding within the organisation and with
relevant service providers.
• Excellence is demonstrated by benchmarking or similar comparison with leading asset management organisations,
or by relevant recognition such as awards or citation.

The Institute of
Asset Management
Management of Change
Context: Management of Change describes policies and processes for dealing with changes to physical assets their management
systems or supporting resources. This subject also includes elements of mitigating the impact of change.
The management activities within the scope of this subject include the development and implementation of change management
policies and processes.

a) There is a clear and structured approach to the management of change (including documentation of policies, strategies and
standards), that enable change to be managed in an integrated way, including the associated risks and benefits and the
impact on the organisation and stakeholders.
b) All changes are assessed for their impacts, using quantified analysis and are managed with the appropriate level of
governance.
c) Change management plans are prepared at a level of detail proportionate to the scale, risk and impact of the change.
Related subjects
28. Organisational Structure

The Institute of
Asset Management
35. Asset Performance and Health Monitoring

The processes and measures used by an organization to assess the performance and health of its assets using performance indicators.
Maturity
Definition
Level
3 • The organization determines its requirements to monitor and measure the performance and health of its assets,
including:
a) What is to be monitored and measured;
b) Methods of monitoring, measurement, analysis and evaluation to ensure results are valid;
c) Establishing criteria to understand when there is deviation from the required level of performance, and if appropriate
identify as a non-conformance;
d) The frequency of monitoring, measurement, analysis and evaluation.
• The organization reports on asset performance, including asset health, in accordance with stakeholder requirements.
• The organization develops a hierarchy of asset performance and asset health reporting through the organization
appropriate to the needs and decisions that are being managed.
• The organization develops a range of leading and lagging performance measures for its assets.
• The organisation establishes monitoring and reporting that allows for the prediction of future asset performance & health.
• The organization regularly reviews asset performance and asset health monitoring, measurement, analysis and
evaluation to ensure that it supports the achievement of asset management objectives and to identify opportunities
for improvement.
• The organization maintains records of asset performance and asset health monitoring, analysis and evaluation.
ISO 55001 clauses.
5 • Asset condition and performance measures are reported at the appropriate level of detail at different levels within an
organization (e.g. through dashboards), with facility for drill-down to understand contributory factors.
• Asset health is measured and monitored and used effectively to support asset management processes including
planning, decision making and life cycle management.
• Asset health quantification and prediction is demonstrably correlated with asset capability and relevant corrective and
improvement activities.
• Asset performance and health monitoring includes effective use of relevant asset information, including historical
records, real-time measures and predictive techniques.
• Asset criticality is considered in determining performance measures and their usages (e.g. weighted significance and
prioritisation of improvement opportunities).
• Management of assets across all parts of the organisation is coordinated through a consistent system of asset
performance measures and targets.
• There is evidence that the organisation consistently achieves its targets.
• The organisation can demonstrate it has researched, evaluated and implemented appropriate innovation and leading
practices in performance monitoring.
• Asset performance and health

The Institute of
Asset Management
Asset Performance and Health Monitoring
Context: Asset Performance and Health Monitoring typically includes the following elements:
• Define critical measures across all of the asset life cycle stages that clearly link to the organisational objectives
• Establish monitoring programs for the evaluation of performance measures, analysis of outcomes and the use of this information for
management decision making and action plans
• Establish clear criteria for understanding when there is a deviation of the asset from the required level of performance
• Establish processes that provide3 essential information to determine whether the asset is performing in accordance with its
management policies, standards, strategic plans, procedures, objectives and performance targets
• Establish process for monitoring, measuring and evaluating the performance of the asset across all stages of the life cycle
• Monitor asset performance against the prescribed criteria and identify where there are deviations between the desired level of
performance and the current level of performance

a) Defined performance & health monitoring metrics are in place, reflecting stakeholder and customer priorities, covering the key
aspects of asset performance and aligned with the delivery of organisational strategic objectives.
b) Asset health quantification and prediction is demonstrably correlated with asset capability and relevant corrective asset
management activities.
c) Visually engaging methods are used to communicate performance, trends, targets and action points.
d) Measurement methods include predictive techniques to enable early intervention.
e) Performance and Health monitoring is cascaded throughout the organisation enabling early action by operatives whilst ensuring
effective escalation and reporting.
f) The organisation is transparent in the sharing of asset performance and health information with relevant stakeholders.
Strategy, Planning
& Decision-making
37. Management
Review, Audit
& Assurance
36. Asset Management

System Monitoring
Asset Life Cycle

Delivery
35. Assets Performance

& Health Monitoring

The Institute of
Asset Management
36. Asset Performance System Monitoring

The processes and measures used by an organization to assess the performance and health of its Asset Management System.
Maturity
Definition
Level
3 • The organization determines its requirements to monitor and measure the effectiveness of the asset
management system, including:
a) What is to be monitored and measured for financial and non-financial performance (including the extent
to which the organisation follows the elements of the AM system);
b) methods of monitoring, measurement, analysis and evaluation to ensure results are valid;
c) Establishing criteria to understand when there is deviation from the required level of performance,
and if appropriate
identify as a non-conformance;
d) The frequency of monitoring, measurement, analysis and evaluation.
• The organization reports on the effectiveness of its asset management system, in accordance with
stakeholder requirements.
• The organization has in place a hierarchy of asset management performance reporting through the organization
appropriate to the needs and decisions that are being managed
• The organization has in place a range of leading and lagging performance measures for its asset management processes
• The organization evaluates its processes for managing risks and opportunities in the asset management
system and reports on their effectiveness
• The organization regularly reviews its asset management system monitoring, measurement, analysis and evaluation
of the asset management system and implements these where they are found to be beneficial and cost effective.
• The organization maintains records of asset management system monitoring, analysis and evaluation.
ISO 55001 clauses.
5 • The organisation has a clearly defined asset management system which is demonstrably monitored and continually
improved over time.
• The organisation achieves this through clearly defined processes and appropriate measures (such as capability or
maturity assessment) which effectively identify and remedy any deviations.
• This is enabled within a clearly defined programme of monitoring, measurement, analysis and evaluation of asset
management system performance.
• Monitoring of the asset management system includes measures of capability and maturity of processes, and their
efficiency and effectiveness, including benchmarking against comparable organizations.
• There is evidence from benchmarking that the actual asset management system performance is consistently aligned
with the expectations of the organisation and its stakeholders (for example, to consistently equal or lead comparable
organizations).

The Institute of
Asset Management
Asset Management System Monitoring

Context: Asset Management System Monitoring is concerned with assessing the performance of or organisation’s Asset Management
System as opposed to the performance of the assets and asset systems which is covered by the subject Asset Performance and Health
Monitoring. Note: the Asset Management System is the management system used to manage an organisation’s assets and not the
Asset Information Management System.
The primary aim of Asset Management System Monitoring is to evaluate the extent to which the System is fit for purpose and is helping
the organisation in delivering its Asset Management objectives. There are two key aspects to Asset Management System Monitoring:
• The extent to which the organisation is following the processes, decision-making criteria and other guidance that is defined within
the Asset Management System; and
• Whether the outcomes from the processes, decision-making criteria and other guidance are in line with the expected outcomes.
This is likely to include the consideration of asset performance (as discussed in the Asset Performance and Health Monitoring
subject) as well as the evaluation of process performance and the performance of the people involved in running the Asset
Management System.
Both of these aspects are typically assessed by a combination of reviews, assurance processes and audits.

a) The organisation uses processes and measures to assess the performance and health of their asset management system by using
a number of predefined criteria, indicators, and maturity assessments and identifies any deviations and takes corrective actions
where necessary.
b) There is a defined programme of monitoring, measuring, and analysing the asset management system performance for the
enterprise and its portfolio of assets to identify deviations from requirements and corrective actions as required.
c) Top management review the output from the asset system monitoring process according to a pre-defined timetable (and
typically at least on an annual basis) and a continual improvement programme is in place.
d) There is top management commitment to the continual improvement of the asset management system.
e) The organisation is invited to represent industry and promote ways of working by external stakeholders - such as regulators or
government.
Strategy, Planning
& Decision-making
37. Management
Review, Audit
& Assurance

System Monitoring
Asset Life Cycle

Delivery

& Health Monitoring

The Institute of
Asset Management

An organization’s processes for reviewing and auditing the effectiveness of its asset management processes and asset management system.
Maturity
Definition
Level
3 • The organisation has documented audit policies and processes.
• The organization carries out internal audits in accordance with its programme, to confirm that the asset management
system meets:
a) its own requirements
b) the requirements of ISO55001
• The organization determines the frequency and content of internal audit of its asset management system
• The organization periodically reviews and continually develops the audit programme to reflect the relative importance
of the organization’s processes and the results of previous audits
• The organization demonstrates that the audits are objective and impartial by:
a) Using competent auditors, independent of those having direct responsibility for the activity being examined.
b) Conducting audits in accordance with agreed definitions for scope and audit criteria
c) Retaining records of the audit results
• The organization reports the audit findings to the appropriate management
• The organization’s top management reviews the asset management system, to ensure its suitability, adequacy and
effectiveness, by:
a) Conducting the review in accordance with a planned schedule
b) Considering the status of actions from previous management reviews
c) Assessing changes in issues that are relevant to the asset management system
d) Assessing trend analysis of non-conformities and corrective actions, results derived from monitoring and
measurement, and audit reports
e) Receiving reports on asset management activity
f) Considering improvement opportunities
g) Considering changes in risk and opportunity profiles
h) Deciding on continual improvement actions and changes needed to the asset management system
• The organization produces and keeps records of the top management review.
ISO 55001 clauses.
researched and implemented leading practice to enable:
• Compliant application of ISO55001 auditing requirements.
• Consideration of efficiencies in application of auditing including combining and aligning audit processes.
• The organisation can demonstrate quantified improved performance as a result of actions initiated from management
reviews.
• This is demonstrated by benchmarking or similar comparison with leading asset management organisations, or by
relevant recognition such as awards or citation

The Institute of
Asset Management
Management Review, Audit & Assurance
Context: Management Review Audit & Assurance describes policies and processes for internal assurance processes, audit policies
and procedures, internal and third party audits, processes for reviewing audit findings and corrective actions and the use of external
benchmarking. The management activities within the scope of this subject are:
• Development of Audit Policies
• Development of Audit Processes
• Execution of Audit Processes

a) Audit plans prioritised and targeted based on asset and process criticality, performance monitoring and feedback
b) Evidence of the pro-active use of auditing in driving continual improvement.
c) A clear understanding within the organisation of how it compares to others and the ability to demonstrate that effective use of
auditing and management review has led to measurable benefits against corporate objectives.
Strategy, Planning
& Decision-making
37. Management
Review, Audit
& Assurance

System Monitoring
Asset Life Cycle

Delivery

& Health Monitoring

The Institute of
Asset Management
38. Asset Costing & Valuation

An organization’s processes for defining and capturing maintenance and renewal unit costs and the methods used by an organization for
the valuation and depreciation of its assets.
Maturity
Definition
Level
3 • The organization determines the financial and technical data and information that is necessary to enable the
management of its assets.
• The organization determines that these data and this information align to the achievement of the organization’s
objectives.
• The organization determines that these data and information enable the organization to fulfil its:
a) legal and regulatory obligations
b) stakeholder requirements
c) needs to make informed decisions on asset management issues
• The organisation has an Asset valuation register and a documented valuation methodology
• The organisation has documented processes for capturing ‘as-built’ capital costs.
• The organization reviews the financial and technical data and information periodically in the light of developments in
quantitative and qualitative analytical measures and also the importance and complexity of the decisions being made
• The organisation implements changes to the measurement, collection and analysis of financial and technical data and
information that support asset costing and valuation where it is beneficial.
ISO 55001 clauses.
5 • Unit costs of the performance or output of asset systems are calculated and used in decision-making and continual
improvement processes.
• Costs are captured at a level of granularity that enables cost/risk/performance optimisation of asset life cycle plans and
activities.
• Activity based costing (ABC) is used in estimating and contracting of all outsourced activities.
• The financial structures and reporting mechanisms are fully integrated with the asset information systems and
information is shared to enable decision making.
• Costing and valuation methods are shown to be using leading practices through benchmarked against comparable
organisations and applicable codes of practice (e.g. RICS New Rules of Measurement), or by peer group recognition
such as awards or citations.

The Institute of
Asset Management
Asset Costing & Valuation

Context: Asset costing is the structure/framework that defines the composition of all costs related to an asset. Asset Valuation
refers accounting or econometrics rules that allowing the estimation or prediction of asset value over its life cycle. Asset Costing and
Valuation methods are typically used to align the functional value (potential usage value), the purchase price, the resale or recoverable
value and accounting or balance sheet values. They also facilitate top-down disaggregation of costs within an asset portfolio, and
bottom-up estimation of value of such a portfolio.

a) The organisation is able to compare its expenditure with comparable organisations for certain asset types. This information is
then used to further improve asset plans and strategies.
b) Reporting mechanisms are available to groups outside of finance so that they can use relevant financial information to make
asset related decisions. For example, an asset manager uses ‘current value’ information from the financial systems to determine
whether a compressor should be replaced or overhauled.
c) Historical asset procurement decisions are reassessed at the end of the asset’s life. For example, the anticipated 10 year
depreciation value of a new process line (from the original modelling) is compared to its actual value 10 years later.
Related subjects
03. Demand Analysis
04. Strategic Planning Asset Management bridges the gap between the technical and
06. Capital Investment Decision-Making financial views of assets. Mature organisations have resolved these
07. O&M Decision-Making different views to achieve a single agreed asset register, life cycle
08. Life Cycle Value Realisation costing, valuation and decision-support criteria.

The Institute of
Asset Management

The methods an organization uses to engage with stakeholders.
Maturity
Definition
Level
3 • The organization identifies the people and organizations that:
a) can have an impact on the asset management system,
b) can experience the consequences of actions and decisions arising from the asset management system,
c) perceive that they could be affected by actions and decisions arising from the asset management system.
• The organization has developed and implemented a strategy to engage with stakeholders. This includes
determination of:
a) the needs and expectations of stakeholders with respect to asset management,
b) the criteria which are to be considered when making decisions in asset management,
c) the range of asset management information that is necessary to support stakeholder relationships,
d) the necessary arrangements to report the information to internal and external stakeholders
• The stakeholder identification process and engagement strategy are aligned with the Asset Management System and
takes into account the organization’s external and internal contexts.
• The stakeholder identification process and engagement strategy are reviewed periodically in light of changes to
external and internal conditions and updated to ensure they remain effective
• Consultation with, and reporting to, stakeholders is conducted at a frequency and in formats, language and level of
detail suitable to the needs of each of the stakeholders
ISO 55001 clauses.
5 • The organisation can demonstrate it proactively reviews its stakeholders and stakeholders’ requirements in a structured
way, in line with their importance to the organisation.
• Compliant application of stakeholder requirements as required by ISO55001
• Recognised within sector as excellent at customer service by internal and external surveys
• No negative media attention as a result of stakeholder mismanagement
• Stakeholders are supportive of the organisation and the organisation is able to achieve reasonable trade-offs where
there are differing requirements between the stakeholder and the organisation.
• Business proactively monitors stakeholder satisfaction and able to demonstrate that constraints are a result of
stakeholder expectations are evaluated and risk managed.
• This is demonstrated by benchmarking or similar comparison with leading asset management organisations, or by
relevant recognition such as awards or citation.

The Institute of
Asset Management
Stakeholder Engagement
Context: Stakeholder Engagement describes policies and processes for the identification, communication, interaction and scenario
development with asset management stakeholders. Such stakeholders include any persons or groups that can affect, be affected by,
or perceive themselves to be affected by, asset management activities or the operation of the asset management system.
The management activities within the scope of this subject include the identification of stakeholders, the elicitation of their
expectations and requirements, the development of policies, strategies and processes for engagement, and the implementation of
these policies, strategies and processes.

a) Business proactively monitors stakeholder satisfaction and able to demonstrate that constraints as a result of stakeholder
expectations are evaluated and risk managed.
b) No negative media attention as a result of stakeholder mismanagement.
c) The ability to demonstrate that stakeholder requirements and expectations are achieved or exceeded.
d) Benchmarking or similar evidence of leading performance compared to other organisations.
Related subjects
03. Demand Analysis
08. Life Cycle Value Realisation
22. Asset Information Strategy

The Institute of
Asset Management
Appendix: Other Maturity Scales
The ‘Capability Maturity Model Integration’

CMMI – https://www.sei.cmu.edu/cmmi
1. Initial (chaotic, ad hoc, individual heroics) - the starting point for use of a new or undocumented repeat process.
2. Repeatable - the process is at least documented sufficiently such that repeating the same steps may be attempted.
3. Defined - the process is defined/confirmed as a standard business process, and decomposed to levels 0, 1 and 2
(the last being Work Instructions).
4. Managed - the process is quantitatively managed in accordance with agreed-upon metrics.
5. Optimising - process management includes deliberate process optimisation / improvement.
The ‘Portfolio, Programme and Project Management Maturity Model’

P3M3 – https://www.axelos.com/best-practice-solutions/p3m3/what-is-p3m3
Level 1 – awareness of process

Level 2 – repeatable process
Level 3 – defined process
Level 4 – managed process
Level 5 – optimised process
The ‘People Capability Maturity Model’

Investors-in-People: https://www.investorsinpeople.co.uk/the-journey
1. The Initial Level

2. The Managed Level
3. The Defined Level
4. The Predictable Level
5. The Optimising Level
The ‘Quality Management Maturity Grid’
1. Uncertainty
2. Awakening
3. Enlightenment
4. Wisdom
5. Certainty
The ‘Testing Maturity Model’
1. Initial – At this level an organisation is using ad-hoc methods for testing, so results are not repeatable and there is no quality standard.
2. Definition – At this level testing is defined a process, so there might be test strategies, test plans, test cases, based on requirements.
3. Integration – At this level testing is integrated into a software life cycle, e.g. the V-model. The need for testing is based on risk
management, and the testing is carried out with some independence from the development area.
4. Management and measurement – At this level testing activities take place at all stages of the life cycle, including reviews of
requirements and designs. Quality criteria are agreed for all products of an organisation (internal and external).
5. Optimisation – At this level the testing process itself is tested and improved at each iteration. This is typically achieved with tool
support, and introduces aims such as defect prevention through the life cycle, rather than defect detection/correction.

The Institute of
Asset Management
Notes

The Institute of
Asset Management
Notes

The Institute of
Asset Management
Notes

The Institute of Asset Management is grateful for the support of our Patrons
The Institute of Asset Management

ISBN 9781908891464
St Brandon’s House 90000 >
29 Great George Street

BRISTOL
BS1 5QT 9 781908 891464
United Kingdom
www.theIAM.org

IAM Asset Management Maturity Guide v1.1 FINAL WEB With Fields

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

IAM Asset Management Maturity Guide v1.1 FINAL WEB With Fields

Uploaded by

Copyright:

Available Formats

Asset Management Maturity

Scale and Guidance

Initial review Development Optimization

Integrated good practices

About the IAM

This document is published by the IAM for the

Maturity Guide Editor SAM+ Team

2 © Copyright The Institute of Asset Management 2016. All rights reserved.

No Asset Management Subject Page No Asset Management Subject Page

Appendix: Other Maturity Scales 96

© Copyright The Institute of Asset Management 2016. All rights reserved. 3

2. Asset Management capability/maturity

4 © Copyright The Institute of Asset Management 2016. All rights reserved.

3. Defining Asset Management maturity

3.1. Differences between Asset Management and the Management System

Managing the Coordinated activity of an

Assets that are within the

ISO 55000 states in 2.4.3, describing the diagram above, that:

Additionally, ISO 55002 states in 4.4 that:

© Copyright The Institute of Asset Management 2016. All rights reserved. 5

Asset Management Strategy & Planning Asset Knowledge Enablers

3.2. The IAM’s previous maturity scale

Awareness Development Competence Excellence

6 © Copyright The Institute of Asset Management 2016. All rights reserved.

3.3. Other maturity scales

3.4. Development of the new scale

© Copyright The Institute of Asset Management 2016. All rights reserved. 7

4. The Maturity Scale

Scale Description Definition Maturity characteristics

8 © Copyright The Institute of Asset Management 2016. All rights reserved.

Integrated good practices in Asset Life Cycle Management

4.1. Asset Management maturity ‘bow tie’

4.2. Use of ‘Integrating’ and ‘Optimising’ terms

4.3. Continual Improvement at Competent & Excellent levels

4.4. Context-dependency at higher maturity levels

© Copyright The Institute of Asset Management 2016. All rights reserved. 9

1. Asset Systems Criticality (importance of managing the assets optimally)

These three dimensions will enable organisations to identify their ‘target

options, 3 x 3 x 3 = 27 potential ‘target zones’ for asset management

10 © Copyright The Institute of Asset Management 2016. All rights reserved.

Step 1: select which Volatility of Business Environment is most recognisable:

Step 2: select the best-fit combination of

A) LOW volatility in business environment

Business Impact or Asset System Criticality

Primary Highways National Rail

Water networks Gas Distribution

© Copyright The Institute of Asset Management 2016. All rights reserved. 11

B) HIGH volatility in business environment

Business Impact or Asset System Criticality

Networked, highly Vehicle Manufacture Mobile Phone Network

Discrete location, IT Leasing

4.6. Contexts represented in this guidance

4.7. Moving targets: updating the definitions of Excellence

12 © Copyright The Institute of Asset Management 2016. All rights reserved.

5. Assessing your organisation’s maturity

5.1. Gap analysis and planning to achieve Competent level

• PAS 55-1:2008 requirements for optimal management of physical assets

Example inputs and results from IAM SAM tool

5.2. IAM Endorsed Assessors

For an up-to-date list of IAM Endorsed Assessors, visit www.theIAM/EA

© Copyright The Institute of Asset Management 2016. All rights reserved. 13

5.3. Audits and Certification against ISO 55001

5.4. Assessments & improvement planning at higher maturity levels