Asset Management transforms from a forgotten step child to Cinderella.

The International Standards Organization, ISO, defines the standard for management systems. ISO 55000, first published in 2014, is the new ISO standard for asset management. It was well received among thought leaders in the field because Asset Management, the forgotten step child in the organization, finally emerged as Cinderella.  ISO 55000 requires that the strategy for managing assets be linked to the strategy of the business. Asset Management is finally a topic on the executive agenda!

Let me back up and explain briefly what motivated the development of ISO 55000 and how it came about. When the utilities in the UK were privatized, the regulators took a close look at performance and noticed that there was not enough value being realized from physical assets. The return on investment of the vast amounts of capital invested in these assets was too low. This had to change.

In the 2000s, a Publicly Available Specification (PAS 55) was developed under the leadership of John Woodhouse of The Woodhouse Partnership Ltd. (TWPL) who chaired The Institute of Asset Management's committee responsible for developing PAS 55. This body of work became the foundation for ISO 55000, the new standard for Asset Management. Woodhouse chaired the ISO committee also, working with members from over 35 countries to agree on the contents and the wording for this important standard.

ISO 55000 opens the door for a huge business opportunity to assist asset-intensive organizations realize value from their physical assets. Simply, it's the right thing to do. Besides, over 35 countries have endorsed it!