Strategic Asset Management

Abstract

Asset Management practice divides duties and authority between three levels of utility management: strategic, tactical, and operational asset management. These may be separate entities or companies. Strategic Asset Management, as described in this chapter, outlines the requirements for the senior management of the firm. These managers are charged with ensuring the company meets its high-level goals, which include meeting financial requirements, minimizing impact to the environment, maintaining safety for the public and the work forces, and managing to an acceptable level of risk. This chapter outlines how the company identifies stakeholders and their goals, translates those goals into business values and objectives and eventually high-level key performance indicators, sets out the parameters of the risk management program, and establishes leadership with the company by defining roles and responsibilities for asset management and other utility personnel.