Asset management - quo vadis (where are you going)?

Abstract

Proponents of asset management (AM) suggest that it can provide financial performance (improved services, outputs, return on investment and reduced costs), improved safety performance, reduced environmental impact and improved ability to demonstrate socially responsible and ethical business practices (ISO, 2014a). However these claims have yet to be demonstrated using systematic empirical methods. The quality management (QM) community faced a similar situation in the 1980s when there was much enthusiasm from its disciples but lack of evidence that QM, and in the 1990s ISO 9001 certification, delivered organisational and financial benefits. This paper looks at the literature from the QM sector to identify lessons for asset managers. It proposes four areas of work as follows: 1) identify the factors that characterise AM practice; 2) measure the cost of AM; 3) demonstrate that AM practice delivers AM and organisational outcomes; 4) determine if ISO 55001 certification delivers improved organisational performance. The benefits of developing a rigorous, evidence-based approach to addressing these questions will provide a strong foundation for the AM discipline. This is a necessary step in a wider acceptance of AM by the business and government communities.