Asset Management Strategy and Objectives

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Name:	Asset Management Strategy and Objectives
Acronym:
Type:	Glossary Item

Definition:

The Asset Management Strategy is contained in the Strategic Asset Management Plan (SAMP). It translates organizational objectives into Asset Management objectives, defines the organisation’s Asset Management system and the approach to Asset Management and the organisation’s assets, and describes the strategies and actions to deliver on Asset Management objectives.

Statement:

The SAMP describes the organisation’s whole life cycle approach to the management of the assets defined by the organization within the scope of their Asset Management system. It would typically include a set of strategic statements that describe current and future Asset Management objectives, the organisation’s intent, and the current and future Asset Management capabilities (Asset Management system, people, process, and technologies) required for the organization to deliver these outcomes predictably and sustainably.

The SAMP would typically include:

Statements aligning Asset Management with the delivery of strategic organizational objectives.
Asset Management objectives formulated in accordance with the Asset Management Policy, using Asset Management decision criteria that are responsive and aligned to organizational objectives and stakeholder requirements including measurable objectives to deliver on the expected economic, environmental, and social performance of an organisation’s asset portfolios and Asset Management activities.
A description of the role, scope and boundaries of the Asset Management system, the asset portfolios included in the scope of the Asset Management system, and interaction with other management systems.
The methods and decision-making criteria used to undertake life cycle performance, cost, and risk analyses that determine the optimum asset interventions (including the methodology for determining asset criticality).
The approach, strategy, and actions used to achieve Asset Management objectives and the realization of value including the approach used to balance performance, risk, and cost objectives to achieve sustainable value from assets.
Key accountabilities for the activities defined in the Asset Management Strategy including the implementation, monitoring, review and updating of the Asset Management Strategy.

The timeframe for a SAMP typically corresponds to the life cycle of asset portfolios or has a sufficient horizon to accommodate planning for assets, Asset Management and Asset Management systems. The planning horizon typically extends beyond an organisation's normal budgetary cycle.