Understanding and complying with ISO 55001: Leadership

Part 2 in the 3 part series focuses on leadership requirements of asset management.
By Darrin Wikoff April 27, 2015

Part 2 in the 3 part series focuses on leadership requirements of asset management. The asset management system translates organizational objectives, relative to value, into technical and financial decisions by way of:

  • Policies,
  • Plans,
  • Processes,
  • Organizational structures, and
  • Resources.

Asset management policies formally express “Top Management’s” intentions and direction within an organization as governing principles or guidelines by which the asset management system should be administered. Top Management refers to those individuals or roles that have the power to delegate authority and provide the necessary resources within the management system.

Asset management plans are documents that translate policy into actions or tasks, including resource requirements and timelines, for a specific asset in order to achieve the stated value and organizational objectives.

After establishing the organizational context for asset management, ISO 55001 defines the leadership requirements. Leadership and culture are determining factors when considering the organization’s ability to administer the asset management system and achieve the organizational objectives, relative to value. Leadership activities include, but are not limited to:

  • Defining roles, responsibilities and authorities,
  • Allocating resources,
  • Ensuring stakeholders are aware, competent and empowered, and
  • Aligning the asset management system with stakeholder requirements.

Here are some steps to take to maximize your asset management:

  • Demonstrate by way of formal meeting agendas and communication schedules the means by which Top Management integrates the asset management system with other management systems within the organization.
  • Demonstrate through documented processes that Top Management is required to participate in setting policies and making decisions that impact asset management objectives. A documented asset management policy should exist that is formally endorsed or authorized by Top Management.  This policy should be governed and administered similar to other organizational policies.  The policy includes core asset management principles, role descriptions, decision making frameworks, risk management frameworks and governance structures, including the date and frequency of a formal policy review.
  • Demonstrate that the necessary level of responsibility and authority has been assigned to the asset management system.  Responsibility refers to the accountability of an individual for a specific outcome, and authority refers to the legitimacy of an individual to manage or govern within a function of the asset management system. The Asset Management Policy should include an organizational chart and "RASI" or "RACI" that clearly illustrates which individuals are responsible and have the authority for each function within the asset management system.

You can see the original article here. Eruditio is part of the content partner program with CFE Media. Edited by Anisa Samarxhiu, Digital Project Manager, CFE Media, asamarxhiu@cfemedia.com