2018 AGAM10-18 Processes Implementation and Improvement

Guide to Asset Management - Processes
Part 10: Implementation and Improvement
Sydney 2018
Guide to Asset Management – Processes Part 10: Implementation and Improvement
Publisher
Third edition prepared by: Mark Gordon, Kieran Sharp and Dr Tim Martin
Austroads Ltd.
Level 9, 287 Elizabeth Street
Third edition project manager: David Darwin Sydney NSW 2000 Australia
Phone: +61 2 8265 3300
Abstract
austroads@austroads.com.au
The third edition of the Austroads Guide to Asset Management (GAM) has
www.austroads.com.au
been produced to provide guidance to road agencies on the application of
contemporary ‘whole of organisation’ asset management practice to road
networks. The Guide consists of 15 Parts across three broad themes: About Austroads
management overview, asset management processes, and technical Austroads is the peak organisation of Australasian
information. road transport and traffic agencies.
The eight Parts of Asset Management Processes address business Austroads’ purpose is to support our member
processes and enablers associated with the asset management business organisations to deliver an improved Australasian
cycle. road transport network. To succeed in this task, we
Part 10 of the GAM expands on content introduced in Part 2: Managing Asset undertake leading-edge road and transport
Management. It discusses five key areas that ensure the successful research which underpins our input to policy
implementation of asset management across the organisation: defining roles development and published guidance on the
and responsibilities; developing asset management plans; delivering asset design, construction and management of the road
management activities; providing guidance and techniques for asset network and its associated infrastructure.
management status assessment; and continuous improvement planning and Austroads provides a collective approach that
monitoring for all activities. delivers value for money, encourages shared
knowledge and drives consistency for road users.
Keywords
asset management, guideline, road network, government, level of service, Austroads is governed by a Board consisting of
strategic asset management plan, asset management plan, asset senior executive representatives from each of its
management policy, continuous improvement planning eleven member organisations:
• Roads and Maritime Services New South Wales

Third edition published July 2018
• Roads Corporation Victoria
This edition of the GAM is based on the overarching asset management
principles of the International Standard ISO 55000 which has a strong • Queensland Department of Transport and Main
customer and strategic focus. Additions to the GAM include the impact of Roads
autonomous vehicles on the road and digital infrastructure, measures to • Main Roads Western Australia
reduce the environmental impact of asset management and the recently-
developed practice of reliability centred maintenance. The GAM also • Department of Planning, Transport and
documents the outcomes of Austroads-funded research undertaken since Infrastructure South Australia
2009, including asset condition monitoring equipment, asset performance • Department of State Growth Tasmania
prediction models and practices that account for risk. The GAM comprises 15
Parts with some 62 case studies demonstrating how asset management is • Department of Infrastructure, Planning and
Logistics Northern Territory
practiced.
• Transport Canberra and City Services
Second edition published August 2009 Directorate, Australian Capital Territory
First edition published March 2006
• The Department of Infrastructure, Regional
Development and Cities
ISBN 978-1-925671-49-0 Pages 50
• Australian Local Government Association
Austroads Project No. AP1900
• New Zealand Transport Agency.
Austroads Publication No. AGAM10-18
© Austroads Ltd 2018

This work is copyright. Apart from any use as permitted under the
Copyright Act 1968, no part may be reproduced by any process without
the prior written permission of Austroads.
This Guide is produced by Austroads as a general guide. Its application is discretionary. Road authorities may vary their practice
according to local circumstances and policies. Austroads believes this publication to be correct at the time of printing and does not
accept responsibility for any consequences arising from the use of information herein. Readers should rely on their own skill and
judgement to apply information to particular issues.
Contents
1. Overview.................................................................................................................................................. 1
2. Roles and Responsibilities .................................................................................................................... 3

2.1 Asset Management Roles ........................................................................................................................ 3
2.1.1 Key responsibilities ..................................................................................................................... 3
2.1.2 Centralised or decentralised ....................................................................................................... 5
2.2 Asset Management Leadership................................................................................................................ 6
2.2.1 Senior management ................................................................................................................... 6
2.2.2 The asset manager ..................................................................................................................... 6
2.3 Asset Management Structure ................................................................................................................... 7
2.3.1 Approaches to structuring asset management teams ................................................................ 7
2.3.2 Cross-functional asset management teams ............................................................................... 8
2.3.3 Types of teams ........................................................................................................................... 8
2.4 Asset Management Coordination and Communication ............................................................................ 9
2.5 Asset Management Competence and Capability ................................................................................... 10
2.5.1 Determine competency requirements ...................................................................................... 10
2.5.2 Assessing overall asset management capability ...................................................................... 11
2.5.3 Training and resources ............................................................................................................. 13
2.5.4 Building capability ..................................................................................................................... 13
2.6 Management Commitment ..................................................................................................................... 15
3. Asset Management Plans (AMPs) ....................................................................................................... 16

3.1 SAMPs and AMPs .................................................................................................................................. 16
3.2 AMPs for Roads and Highways .............................................................................................................. 16
3.3 SAMPs Content ...................................................................................................................................... 17
3.4 Content of AMPs .................................................................................................................................... 19
4. Service Delivery Models ...................................................................................................................... 20

4.1 Core and Non-core Activities .................................................................................................................. 20
4.2 Models .................................................................................................................................................... 20
4.3 Risk Management................................................................................................................................... 21
4.4 Resources and Scheduling .................................................................................................................... 21
5. Asset Management Status Assessment ............................................................................................ 24

5.1 Maturity Assessment Frameworks and Approaches .............................................................................. 24
5.1.1 IAM ‘Self-assessment Methodology Plus’ (IAM 2015) ............................................................. 24
5.1.2 IIMM-based gap analysis tools ................................................................................................. 25
5.1.3 NZ treasury maturity assessment tool ...................................................................................... 28
5.1.4 Summary .................................................................................................................................. 30
5.2 Asset Management Assessment ............................................................................................................ 30
5.2.1 Planning the assessment ......................................................................................................... 30
5.2.2 Conducting the gap analysis process ....................................................................................... 31
5.2.3 Examples of gap analysis assessments................................................................................... 31
5.2.4 ISO 55001 requirements .......................................................................................................... 34
5.2.5 Benchmarking ........................................................................................................................... 35
6. Continuous Improvement .................................................................................................................... 38

6.1 Identify Improvement Actions ................................................................................................................. 39
6.2 Prioritise Actions ..................................................................................................................................... 39
6.3 Develop Asset Management Improvement Plan .................................................................................... 42
6.4 Implement Asset Management Improvement Plan ................................................................................ 42
6.5 Monitor the Results................................................................................................................................. 43
6.6 Continuous Improvement Culture ........................................................................................................... 43
Austroads 2018 | page i

6.7 Other Management Systems .................................................................................................................. 44
7. Example of Approach to Implementation .......................................................................................... 47

7.1 Stage One – Establish Foundations for Asset Management ................................................................. 47
7.2 Stage Two – Develop Best Practice Asset Management....................................................................... 47
7.3 Stage Three – Consolidate and Review ................................................................................................. 48
References ...................................................................................................................................................... 49
Tables
Table 2.1: Road agency management functions and responsibilities ....................................................... 4
Table 2.2: Competences framework content summary ........................................................................... 11
Table 2.3: Example of a competency matrix ............................................................................................ 12
Table 4.1: A selection of service delivery models .................................................................................... 21
Table 5.1: IAM asset management maturity levels .................................................................................. 26
Table 6.1: Continuous improvement life-cycle ......................................................................................... 38
Figures
Figure 1.1: Asset management implementation within an organisation ..................................................... 1
Figure 1.2: Aligning the implementation of asset management with organisational
objectives .................................................................................................................................. 2
Figure 2.1: Centralised asset management function structure ................................................................... 5
Figure 2.2: Cross-functional asset management structure ......................................................................... 8
Figure 2.3: High level organisational structure ............................................................................................ 9
Figure 2.4: Asset management competences framework ......................................................................... 10
Figure 3.1: Example of hierarchy of policies and plans ............................................................................ 17
Figure 5.1: Home Page for IAM Self-Assessment Methodology Plus tool ................................................25
Figure 5.2: Asset management landscape subjects ................................................................................. 26
Figure 5.3: IIMM five stages of maturity .................................................................................................... 27
Figure 5.4: NZ Treasury maturity assessment subject areas ................................................................... 29
Figure 5.5: NZ Treasury maturity assessment scale ................................................................................ 29
Figure 5.6: NZ Treasury maturity assessment typical output .................................................................... 30
Figure 5.7: IIMM-based tool – gap analysis summary results ................................................................... 32
Figure 5.8: IIMM-based tool – gap analysis results for asset knowledge .................................................32
Figure 6.1: Prioritising improvement actions using cost-benefit-analysis .................................................40
Figure 7.1: Three stages of implementation and continuous improvement ..............................................47
Austroads 2018 | page ii

1. Overview
Part 10 of the GAM describes the approaches to implementing asset management across the organisation,
including roles and responsibilities, asset management plans and service delivery models. It also provides
guidance and techniques for continuous improvement through self-assessment, gap analysis, and
improvement planning. It expands on the content introduced in Part 2.
Implementation should deliver on the agency’s asset management policy and objectives through initiatives
and programs developed through the Strategic Asset Management Plan (SAMP) and Asset Management
Plans (AMPs). These may include operation and maintenance activities, asset renewals, new asset
investments and specific improvement tasks, all of which should be described in individual AMPs.
Asset management implementation should be seen as an agency-wide process of continuous improvement

and not as an independent specialist activity undertaken only by transportation engineers or practitioners. It
should be policy driven, with the strategic direction and goals it seeks to deliver closely linked to corporate
strategic policy.
Part 10 of the GAM discusses the following five key areas to help ensure the successful implementation and
improvement of asset management within an organisation (see Figure 1.1).
Figure 1.1: Asset management implementation within an organisation
• Roles and responsibilities – The importance of leadership and organisational structure was introduced in
Part 2, Section 2.1. Part 10 describes in more detail the roles of leadership and teams in the context of
implementation and improvement, outlining typical responsibilities for key teams.
• SAMP and AMPs – The context for these plans was introduced in Part 2, Sections 5.5 and 5.6. Part 10
provides more detail of the different approaches agencies are taking to the structure and content of these
plans, and how they can be more effectively used in managing roads and highways assets.
Austroads 2018 | page 1

• Delivering asset management activities – The need to determine and document the way in which an
organisation intends to resource and deliver its activities was introduced in Part 2, Section 5.6, whilst the
use of service delivery models as an enabler was introduced in Part 3, Section 4.5. Part 10 provides more
detail on these approaches, with a focus on the effective delivery of the programs in the AMPs.
• Asset management status assessment – The asset management improvement process, based on the
concepts of maturity, assessment and improvement planning was described in Part 2, Section 6. These
processes are also important enablers, as highlighted in Part 3, Section 4.6. Part 10 describes in more
detail practical approaches to conducting maturity assessments for transport agencies.
• Continuous improvement – The improvement planning process introduced in Part 2, Section 6.3 should
be seen as a prerequisite in developing a continuous improvement culture. The continuous improvement
cycle as a key enabler of effective asset management practice was described in Part 3, Section 4.6. Part
10 discusses in more detail how the results of a status assessment can be used to identify, prioritise,
deliver and monitor improvement actions within an organisation.
For the implementation of asset management in a road agency context and improvement in asset
management practice, readers are referred to the following sections of ISO 55001:2014 for further guidance:
• ISO 55001 Section 4, Context of the organisation, so that the asset management objectives included in
the SAMP are aligned with organisational objectives.
• ISO 55001 Section 6, Planning, to address achievement of asset management objectives, while
accounting for potential risks and opportunities and having adequate resources.
• Sections 4.1, 4.2, 4.5 and 4.6 of the Institute of Public Works Engineering Australasia International
Infrastructure Management Manual (IIMM) (IPWEA 2015) provide examples of how asset management
can be implemented satisfactorily.
Figure 1.2 illustrates the link between organisational objectives, the implementation of asset management
activities and improvement planning is illustrated in Figure 1.2.
Figure 1.2: Aligning the implementation of asset management with organisational objectives
Note: AM = asset management.

2. Roles and Responsibilities
2.1 Asset Management Roles
Asset management plays an important role in bringing a whole-of-organisation approach to delivering the
services that assets enable, and should not be a function isolated from other business functions, such as
finance, planning, human resources, information technology, customer service, etc. This is reflected in
ISO 55000:2014, which defines the role of asset management as:
… the coordinated activity of an organisation to realise value from assets 1. Good asset
management is about achieving best value through the right balance between cost, risk
and performance.
Managing the asset needs a team effort that requires a variety of specialised skills and capabilities.
Implementation goes through various stages. Road agencies which already have planning, programming,
operational and data collection functions should not have to add any major new functions. It is, however, a
matter of coordination and integration of these functions.
In the early stages of implementing asset management, or an improvement plan, the agency may rely on a
limited number of people who have multi-disciplinary training and experience scattered throughout the
organisation. This requires highly-motivated and focussed individuals who have the ability to drive change.
As implementation moves to subsequent stages of advancement, these individuals will need to assemble a
larger cross-functional team. As a result, the most valuable skill of an asset management team leader is not
technical but managerial and leadership.
The role of asset managers in integrating organisational decision-making encompasses:

• providing a link between strategic goals and longer-term processes and annual project level decisions
• providing a link between asset creation and asset maintenance decisions
• providing a link between agency road use management and physical asset decisions
• considering all asset sub-classes – roads, drainage, mechanical and electrical, roadside and structures
• ensuring consistent communication between legislators, community, stakeholders, agency executives
and frontline practitioners
• ensuring the appropriate management and flow of asset related data and information across the
organisation to inform asset strategy development and monitor asset performance
• providing a link between finance, planning, human resources, information and delivery functions of the
organisation
• providing asset performance feedback to inform future policies and strategies.
2.1.1 Key responsibilities
A desire to improve asset management can be a catalyst to drive positive change within an organisation,
improving the way existing functions are performed in conjunction with the various participating units of an
agency working together more effectively to accomplish service performance goals. Consequently, this
results in the more effective and efficient use of assets.
1
Assets are defined as ‘an item, thing or entity that has potential or actual value to an organisation’. Source: (ISO 55000:2014).

Regardless of the size and structure of an agency, there is a fundamental framework for organisational roles
that covers:
• asset ownership – why things need to be done
• managing the asset – what needs to be done, where and when
• service provision – delivering what needs to be done, either using in-house resources or an external
contract resource.
The asset management cycle within a road agency involves different responsibilities and interfaces, as
described in Table 2.1. It is important that roles and responsibilities are clearly understood by all those
involved in the overall process, as having a clear focus on the execution of particular tasks helps improve
organisational effectiveness.
Table 2.1: Road agency management functions and responsibilities
Management function Typical responsibilities Roles involved

Network information • Management and reporting of information on • Asset owners, asset managers
road assets. and service providers
• Import and export of data to and from
analytical and reporting tools.
Network planning • Formulation of objectives and associated • Asset owners and sectoral policy
levels of service and standards. advisers
• Development of strategies and resource • Asset owners and asset managers
requirements to support defined levels of
service, standards and objectives, including
the use of non-asset solutions.
Programming • Network screening to identify candidate • Asset managers and service
sections. providers
• Production of a list of priority sections with
ranking based on economic criteria (within
budget constraints).
• Determination of the necessary work
program to meet performance objectives.
Preparation • Economic (and financial) feasibility of • Asset owners and project/asset
alternatives for rehabilitation, new managers or service providers
investment or capacity expansion.
• Project investigation and design of works. • Project/asset managers or service
• Preparation and issue of contracts and providers
works instructions.
Implementation of physical • Planning and undertaking of major or minor • Service providers and
works works to be carried out on specific sections project/asset managers
and projects.
Monitoring and evaluation • Measurement of achievements against key • Asset owners
performance indicators (KPIs). • Asset managers or service
• Assessment of future asset management providers would be expected to
strategies and plans. implement internal quality
assurance (QA) systems as part of
each specific function
Source: Adapted from Robinson, Danielsson and Snaith (1998).

2.1.2 Centralised or decentralised
There is no one perfect solution as to whether an agency’s asset management function should be
centralised or decentralised. Both have advantages and disadvantages; it also depends on the size of the
agency. Centralisation can be regarded in either a geographical or a functional sense:
• geographical – for example, asset management functions are carried out in regional offices
(decentralised) or in a single typically head office location (centralised):
– even with centralised direction and control, there may be variations in how much activity is carried out
at a regional level.
• functional – for example, different asset groups being managed separately (such as pavements,
structures, electrical assets, etc. – decentralised), or all assets being managed by one group
(centralised).
Different variations are possible – for example, different specialist groups may report to an executive asset
management position in the centralised model.
A centralised asset management team that sets all the parameters, including works programs and AMPs for
all the different geographical regions in the overall road network is shown in Figure 2.1.
Figure 2.1: Centralised asset management function structure
Source: Derived from IPWEA (2015).
Typical advantages of a centralised approach are that it provides:

• a dedicated resource of asset management expertise
• team focus in preparing AMPs.
This approach may favour smaller organisations which may not require a full-time asset management role in
each activity area.
Typical disadvantages of a centralised approach are that:

• more influence is required to get inputs into AMPs since the people responsible for asset management do
not have direct authority over other teams
• AMPs can become isolated from day-to-day asset planning and operations
• the asset management team may not have a high level of specific technical knowledge.

In a decentralised approach, these advantages and disadvantages tend to be reversed. Adopting a

decentralised approach would, however, mean that the organisation requires a strong cross-functional asset
management coordination team to ensure approaches are consistent and best practices are shared among
the teams.
Hierarchical level or influence within the organisation
An important point to consider is the level at which asset management has influence within the organisation.
Given the importance of the role in enabling cross-functional integration and coordination described in
Section 2.1, the individual responsible for driving asset management practice should not be buried deeply
within the structure where there is little ability to influence and communicate regularly with the agency’s
senior management.
2.2 Asset Management Leadership
2.2.1 Senior management
The importance of senior executive direction and influence is reflected in ISO 55001, which defines a number
of asset management roles for ‘top management’. These can be summarised as:
• being responsible for aligning and coordinating asset management activities with the organisation
objectives and ensuring appropriate resources are allocated to support these activities
• ensuring that the SAMP and AMPs – including their delivery and the asset management objectives and
the stability, adequacy and effectiveness of the asset management system are established and updated.
Moving from the role of an individual or ‘champion’ in driving asset management described earlier, a member
of the senior executive should sponsor, or be represented on, an asset management leadership team in the
role of ‘asset owner’. This will help to ensure clear communication of strategic direction, coordination as
required with other parts of the organisation and, if necessary working to achieve wider buy-in to the
agency’s ‘asset management story’.
Asset management leadership
Asset management should be led and coordinated by a leadership or steering team; it should respond to the
agency’s strategic direction, ground the culture, and drive implementation and improvement. This team
should be cross-functional, and typically comprise the ‘asset manager’, appropriate departmental managers
and representatives of the ‘asset owner’, the road agency.
This team would typically be responsible for affirming the AMP and objectives, deciding what other
cross-functional teams should be established and for what purpose, and determining the specific tasks
expected of these team(s). Team members should cascade management commitment and drive
coordination into the operational functions of the agency.
Refer to ISO 55002: 2014 Clause 5.1, Leadership and commitment, for additional guidance.
2.2.2 The asset manager
The asset manager should be a senior manager within the organisation’s hierarchy, with defined
responsibilities spanning across all asset management activities. In some cases, the role may be filled at an
executive level with delegations for day-to-day asset management activities. This role should convene the
asset management leadership team and recommend that the AMP, and its objectives, be adopted.

In terms of the model presented in Key responsibilities (see Section 2.1 and Figure 2.1), the asset manager
should report to the asset owner, a corporate reporting line, and be responsible for ensuring that the service
provider carries out the appropriate work on the asset. Asset management activity needs to be coordinated
and directed as it is an important responsibility.
2.3 Asset Management Structure
The importance of leadership and teams in developing an ‘asset management capable’ organisation was
discussed in Part 3, Section 4.1. ISO 55001 reinforces the importance of having an effective asset
management structure within the organisation:
Top management shall demonstrate leadership and commitment with respect to the asset
management system by ensuring integration of the asset management system into the
organisation’s business process and directing and supporting persons to contribute to the
effectiveness of the asset management system.
2.3.1 Approaches to structuring asset management teams
By creating a formal structure around asset management functions, a common understanding and a
common purpose to achieve the organisation’s asset management goals can be created and encouraged.
While there is no single ‘perfect’ organisational structure, there are three key features that are characteristic
of effective asset management within a road agency:
• recognition of the different roles of the asset owner, asset manager and service provider, as explained in
Section 2.1
• core asset management functional unit – to:
– focus on the implementation of the asset management framework
– establish the processes within the asset management business cycle
– coordinate asset management activity
• In larger organisations, there may also be specialist groups or teams – e.g. pavements, bridges, ITS, etc.
• cross-department or cross-organisational ‘virtual’ team(s), the members of which are drawn from different
business functions to suit the particular purpose of each team. Members may come from corporate,
finance, human resources, information systems, strategic planning, operations and maintenance, etc., as
appropriate to team purpose. Team purposes could include:
– developing the SAMP and AMPs
– developing levels of service, program prioritisation, risk management, information management, etc.
• This is a matrix approach with horizontal team responsibilities, but does not change vertical organisational
reporting and management lines.
In practice, road agencies may be organised in a variety of ways: centralised or decentralised; modal or
multi-level modal; discipline-centred or function-centred; large, small, and everywhere in between to achieve
their goals and objectives. Regardless of how big an agency is or how it is structured, it can benefit from a
cross-organisational asset management approach.
It is also important that the specialist teams have a robust technical knowledge and understanding of the
asset groups for which they are responsible – particularly where external resources are used to provide
technical inputs to decisions with long-term implications.

2.3.2 Cross-functional asset management teams
The establishment and tasking of other cross-departmental or cross-functional teams are important enablers
in achieving a strong asset management culture and in developing a shared ethos of long-term responsible
stewardship of the assets. These teams can help in providing cross-organisation support and collaboration.
Figure 2.2 provides a possible structure for this type of organisation.
Note that an asset management-focussed team structure does not necessarily change the structure of an
organisation; rather, it can work within it by providing horizontal connectivity and communication to best
achieve asset management objectives. Within such a ‘matrix’ approach people from different parts of the
agency can work together to achieve specific asset management objectives and carry out specific tasks that
are assigned to the team.
Figure 2.2: Cross-functional asset management structure
2.3.3 Types of teams
There are five types of team that can be identified when discussing asset management structure at a high
level. These teams cover leadership (support for asset management), forward focus (planning for service
delivery), present day focus (operations, maintenance and construction), data and information (decision
making support, measurement of performance) and support services (IT, finance, HR and administration).
Figure 2.3 shows these teams at a high level. It is vital to determine how these teams will interact in practice.

Figure 2.3: High level organisational structure
The asset management structure which is most appropriate for an agency should align with the
organisational goals and objectives to deliver the mission and vision. Organisational structure should be
reviewed periodically, typically every two to three years in the early stages of advancing maturity, depending
on changing circumstances and the rate of progress in achieving the desired level of asset management
practice.
Refer also to ISO 55002:2014 for further guidance.
2.4 Asset Management Coordination and Communication
Both the asset manager and the asset management leadership team are responsible for coordinating and
communicating asset management activities throughout the organisation. They need to work closely with
other teams and departments such as finance, information systems, planners, operations and maintenance,
capital delivery, etc., all to ensure that personnel are aware of their contribution and that what is delivered
supports the asset management objectives.
Refer also to ISO 55001:2014 Clause 6.2.2 for further guidance on coordination. ISO 55001:2014 states:
The organisation shall integrate the planning to achieve asset management objectives
with other organisational planning activities, including financial, human resources and
other support functions.
Refer also to ISO 55001:2014 Clause 7.4 for further guidance on communication. ISO 55001:2014 states:
The organisation shall determine the need for internal and external communications
relevant to assets, asset management and the asset management system on what it will
communicate, when and with whom to communicate and how to communicate.

2.5 Asset Management Competence and Capability
The need for well-defined capability and competence has to be matched to training and development was
highlighted in Part 3, Section 4.1 as one of the enablers of the asset management process. Their importance
is reflected in ISO 55001:2014 Clause 7.1 which requires organisations to:
Determine and provide resources needed for the establishment, implementation,
maintenance and continual improvement of the AM system.
Having appropriate asset management capability helps the agency to achieve its asset management
objectives. Top management is responsible for ensuring that sufficient resources (capacity) with appropriate
skill sets (capability) are provided to enable individuals and the organisation to achieve the objectives.
Refer to ISO 55001:2014 Clause 7.1 and 7.2 for further guidance. Section 4.1 of IPWEA (2015) provides
more detail regarding implementation.
2.5.1 Determine competency requirements
Asset management competency should be addressed at all levels in an organisation to ensure alignment
rather than just concentrating on a few selected engineers or practitioners. Current competencies should be
mapped to an existing framework such as the seven roles framework in Figure 2.4 provided by the Institute
of Asset Management (IAM) (2014a) and where gaps exist specific training and development plans should
be put in place to address the gaps as part of the continuous improvement cycle.
Figure 2.4: Asset management competences framework
Source: Institute of Asset Management (IAM) (2014a).
Each of the roles in this diagram are summarised in Table 2.2.

Table 2.2: Competences framework content summary
Row Summary
Role 1: Policy These units ensure that asset management activities are aligned with, and achieve, the
development organisational strategic plan. As defined in ISO 55002:2014, an asset management policy
is a statement that sets out the principles by which the organisation intends to apply asset
management to achieve its organisational objectives. The policy should set out the
organisation’s commitments and expectations for decisions and activities and behaviour
concerning asset management. It should be aligned to, and demonstrate support for, the
organisational objectives. Policy-making involves deciding on a definitive course or method
of action, selected from alternatives, to guide and, often, to determine present and future
asset management decisions.
Role 2: Strategy These units are concerned with the provision of strategic asset management direction and
development leadership and include identifying strategic requirements, demand analysis and forecasting,
and strategy development. This role is essential to ensuring that asset management
activities are focused on and achieve organisational objectives.
Role 3: Asset These units are concerned with the identification, appraisal, optimisation and prioritising of
management planning options and the development of effective AMPs for implementing the AM strategy and
delivering the AM objectives.
Role 4: Implement These units are concerned with how the complete asset lifecycle is managed and planning
AMPs and controlling the delivery of its main components. They cover operation, maintenance,
optimisation and rationalisation of assets.
Role 5: Asset These units are appropriate for those who manage or influence processes that support
management capability effective delivery of asset management strategy, objectives and plans. They cover how
development competence is developed and managed in the boardroom, the workplace and the supply
chain, the management of organisational change and the development of a suitable
organisational culture. They address how suppliers of products and services are managed
and developed.
Role 6: Risk These units are concerned with ensuring that your organisation acknowledges,
management and understands and manages risk effectively and that performance is reviewed and improved
performance over time. Risks include, but are not limited to, health and safety, security, environment
improvement (including climate change), reputation and finance.
Role 7: Asset These units are concerned with defining the asset information needed, how it is gathered
knowledge and analysed, how it is then interpreted and managed and how the knowledge generated is
management applied.
Source: IAM (2014b).
2.5.2 Assessing overall asset management capability
A good approach is to use a competency matrix when assessing the overall asset management capability in
an organisation. This is a standard 2 x 2 matrix with the role and skills as outlined in the competency
framework on the x-axis of the matrix and the list of staff together with their position on the y-axis. Each staff
member is assessed on a scale in terms of where they are currently and where they need to be in the future.
This becomes the gap and a training plan can be developed for each staff member as part of their
performance development. Table 2.3 shows an example of such an approach, and the level of detail
possible. The example includes competences in relation to ISO 55001:2014 and the skills and activities
involved with the asset management cycle.

Table 2.3: Example of a competency matrix
Skill/competency
Name Position
Strategic Financial Customer Work Contract
AM planning PMS analyst Procurement
management management consultation programming management
Team Asset Target 4 3 3 3 3 2 3 2
Member #1 Manager Current 4 2 2 2 2 1 2 1
Team Data Target 2 2 0 0 4 0 0 0
Member #2 Analyst Current 1 1 0 0 3 0 0 0
Team Finance Target 0 2 4 0 0 3 0 2
Team Contract Target 2 2 2 2 2 4 4 4
Team Asset Target 3 4 4 4 3 2 2 2
Legend:
Not applicable 0
Unskilled 1
Base skill 2
Fully competent 3
Expert 4

2.5.3 Training and resources
When performing an asset management gap analysis within an organisation, part of the process should
identify the competencies required for effective asset management at staged levels of maturity and test these
against the competencies of existing staff, identifying gaps for training.
Incorporating asset management competencies and knowledge requirements which cover technical, process
and interpersonal skills in job descriptions ensures an organisation has the capability to efficiently and
effectively prepare, implement and review the AMPs and asset management practices.
2.5.4 Building capability
As the organisation matures in its asset management practices and experienced staff leave the organisation,
a capability gap is likely to occur. It is crucial to continually build capability through succession planning to
ensure the organisation can continue to meet its asset management objectives. Building capability can
include but is not limited to the following methods:
• training – which could include on-the-job training and also attending training courses and conferences
provided by 3rd party providers
• external support – whereby the organisation temporarily engages short-term external resources to carry
out the work where there is insufficient internal capability; this also allows the opportunity for knowledge
transfer and training of internal staff to build capability
• recruitment – which purpose is to increase capability and also capacity.
An example of a road agency competency review and subsequent development plan is provided in Case
Study 1.
Case Study 1: NZ Transport Agency (NZTA) Capability Review and Development
Over time NZTA has commissioned independent asset management maturity assessments which have
assisted in targeting areas of capability development. These are similar to other case studies discussed in
this section and in Part 2.
In addition, every two years The Treasury (the New Zealand Government’s lead advisor on economic,
financial and regulatory policy) carries out an Investor Confidence Rating (ICR) assessment of investment-
intensive agencies with large asset portfolios or who manage assets that are service critical to the NZ
government. The ICR uses a rating scale from A to E, with an ‘A’ rating signalling a high level of
performance and an ‘E’ rating indicating significant assistance may be required for the agency’s
investments to deliver results. The ICR helps individual agencies identify where they need to lift capability
to maximise the value of their investments and assets, and where there are implications relating to
autonomy, financial delegations and monitoring and reporting.
The ICR is made up of lead and lag indicators or elements, shown in the diagram; of note in relation to
organisational capability:
• the asset management maturity element uses a tool that assesses the target and current levels of
asset management maturity in central government agencies and leads to recommendations on
relevant improvement actions
• the P3M3 management maturity element represents the capability and maturity of an organisation to
run projects, programmes and portfolios
• the organisational change management element consists of a series of techniques and activities, which
when proactively coordinated and executed smooth the transition from the ‘old’ to the ‘new’
environment and ensure that change is not just implemented but is embedded and set up to support
delivery of the benefits from the change.

An ICR assessment was carried out for NZTA in 2016, and a ‘B’ rating determined. This review found
NZTA to be a well performing and mature organisation, with strong asset management practices,
consistently meeting its asset performance targets, and delivering projects on time, to scope and to
budget. Improvements were identified in several key areas, including:
• rationalise investment-related reporting requirements
• better manage other stakeholder and monitoring requests for information and oversight
• lift P3M3 capability and enhance benefits management
• develop a Long-Term Investment Plan (LTIP) with a 10-year horizon.
These recommendations are being actioned by NZTA, in relation to not only its own capabilities but also
those of the wider road sector in New Zealand, both local authorities and the service delivery sector.

2.6 Management Commitment
The importance of management commitment was highlighted in Section 2.2, and is particularly necessary for
success where change is necessary. This is also reflected in ISO 55001:2014, Clause 5.1, which outlines the
various ways leadership shows commitment to asset management within an organisation. The following list
is an illustration of items crucial to the commitment of management to the implementation of asset
management (for the full list, see ISO 55001:2014):
• making references to asset management principles in communications
• setting the objectives and measures of success for the people responsible for asset management
activities
• establishing a strong collaborative culture focusing on delivering asset management objectives
• supporting asset management related improvement activities.
Commitment is visible when management is seen to be positively influencing the culture of the organisation.
Senior management may appoint and delegate to an individual to oversee the development, implementation
and continuous improvement of an asset management system. It is important, however, that ownership and
accountability for asset management remains within the asset management leadership team.
Commitment should be driven from the top and can be achieved when leaders communicate the value and
the benefit asset management brings to the organisation. This can be further reinforced when the
organisation rewards individuals and teams in achieving high standards in asset management activities.

3. Asset Management Plans (AMPs)
AMPs were introduced earlier in Part 2, Section 5 of the GAM in relation to ISO 55001:2014 and in Part 3,
Section 4.2 as one of the enablers of the asset management business process. They are an important tool
for organisations in bringing information together, defining the services being provided to the agency’s
customers, describing how life-cycle decisions are made, and finally developing the long-term financial
programs necessary for sustaining the assets.
Their importance is reflected in ISO 55001:2014, which defines two types of plan:
• SAMP – refer to Part 2, Section 5.5 of the GAM.
• AMPs – refer Part 2, Section 5.6 of the GAM.
3.1 SAMPs and AMPs
ISO 55000:2014 defines AMPs as:

The asset management plan (AMP) can enable an organisation to create a link, if needed,
between its asset management system, as described by ISO 55001, ISO 55002 and ISO 55000,
and a variety of specific, technical asset management requirements. These specific, technical
requirements are given standards both inside and outside the ISO environment, and at the
international, regional or national standardisation levels; such standards provide information on
strategies and tactics, as well as specific design, construction, material or process requirements.
In addition, the definition from ISO 55001:2014 notes that ‘an AMP should be documented at a level that is
appropriate to the organisation and the degree of sophistication in its asset management approach’. It is
typical that AMPs have the basis for asset management activities, operational and maintenance plans,
capital investment plans and financial and resource plans.
The SAMP is a higher-level document that gives effect to the AMP; it should influence the more specific,
more detailed AMPs. For example, a road agency may have separate AMPs for roads, drainage, mechanical
and electrical, roadside and structures assets or a series of regional AMPs and an overarching SAMP
covering the whole road network.
Whether or not an agency chooses to develop both types of document, or how these documents are
structured, will depend on individual circumstances and whether or not the agency wishes to align its
practices with ISO 55001:2014. In any case, having both is good practice for large organisations such as
state highway agencies with multiple asset types and diverse geographical regions. Smaller agencies may,
however, choose to combine the functions of the SAMP and the AMPs together in a single document.
All AMPs should include a clear reference to the SAMP in order to demonstrate the ‘line of sight’ 2 between
the agency’s strategic objectives and their more detailed asset management activities.
3.2 AMPs for Roads and Highways
A possible arrangement for a road agency which is responsible to Government is shown in Figure 3.1. The
‘line of sight’ from the high level through to the AMPs should be explicit and transparent at all stages.
2
Line of sight is a concept from theory on compensation and goal-setting that suggests that rewards and performance goals should
be designed so that the employee sees a common line of sight between their goals and the organisation (Boswell & Boudreau
2001).

A recommended approach to implement AMPs by first determining the scope of the AMPs and then
preparing and communicating the content of AMPs is presented in Sections 4.2.1 and 4.2.2 of
IPWEA (2015).
3.3 SAMPs Content
ISO 55000: 2014 defines SAMPs as:

An organisation’s SAMP should be used to guide the setting of its asset management
objectives and describe the role of the asset management system in meeting these
objectives. This includes the structure, roles and responsibilities necessary to establish
the asset management system and to operate it effectively. Stakeholder support, risk
management and continuous improvement are also important issues to be addressed in
the establishment and operation of the asset management system.
SAMPs may fulfil different purposes and needs, but at all times should be the link between higher level goals
and objectives and the more detailed AMPs. For example, in New Zealand local government is required to
prepare Long Term Infrastructure Strategies covering a 30-year period across their asset portfolios. This
document could be extended to form the basis of an ISO 55001 aligned SAMP/Asset Management Strategy.
Large agencies with extensive, complex asset portfolios can use the SAMP to provide guidance to how their
more detailed AMPs should be structured and the strategic issues they should respond to in order to form a
robust agency-wide business case for future funding.
SAMPs should be regularly assessed for their support of the current asset management objectives. This
assessment is intended to find where any gaps exist that become an input to a management review and an
improvement process for the asset management system (see Section 6).
Figure 3.1: Example of hierarchy of policies and plans

ISO 55001:2014, Clauses 4 and 6, note that SAMPs should:

• include asset management objectives (requirements of stakeholders, financial, technical, legal and
regulatory requirements)
• have asset management objectives aligned with broad organisational objectives
• scope of asset management system aligned with SAMP and AMP
• document how the asset management system will support delivery of the SAMP.
Some agencies use the SAMP in a bi-directional manner:

• provide ‘top-down’ strategic direction to the development of AMPs for assets
• from the ‘bottom-up’, summarise and integrate the outputs from individual AMPs to produce medium and
long-term investment forecasts required to meet the asset management objectives.
An example of the development of a road agency’s SAMPs for various infrastructure assets is presented in
Case Study 2.
Case Study 2: Development of SAMPs at Department of Planning Transport and Infrastructure

(DPTI) South Australia
DPTI has developed SAMPs for its rail and roads and marine assets. The SAMPs provide direction for detailed AMPs for
individual asset groups. The Triangle (opposite) shows how the SAMPs provide the rationale for the plans developed at
the ‘tactical’ level in the AMPs, which in turn inform short term delivery programs at the ‘operational’ level.
The Roads and Marine SAMP is aligned with the State’s goals and objectives, the Integrated Transport and Land Use
Plan, and other strategic documents. It provides an overview of the asset portfolios, the current state of asset
management, and the asset management objectives. It describes roles, responsibilities and the planning approaches.
Once all of the detailed AMPs have been completed, they will be rolled up, prioritised and aggregated in the SAMP,
forming the business case for funding approval.
The SAMP includes a template for each AMP to follow, including a scenario-based approach to considering the
implications of baseline funding needs compared to higher or lower levels of funding.

3.4 Content of AMPs
AMPs typically provide details of the specific tactics and financial programs for each asset portfolio, including
operations and maintenance, renewals, new asset capital and asset disposal programs. Road agencies may
choose to use Section 4.2.4 of the IIMM (IPWEA 2015) as a guide in preparing and implementing their own
template and outline structure, including levels of service, future demand, risk management, life-cycle
management (maintenance activities, renewal forecasts, new capital programs, etc.), financial information
and asset management practices improvement plans.
The following steps should be considered when preparing AMPs:

• Determine the purpose of the AMPs and how they are related to the SAMP (if a separate SAMP is in
place or to be prepared).
• Determine the asset portfolios for which the AMPs are to be developed and applied.
• Determine an annual timetable for developing and reviewing the AMPs and link the timetable to the
organisation’s budget development cycle.
• Establish, or review, the process for the development of the AMPs, including leadership, stakeholder
involvement, likely users and who will be responsible for preparing them.
• Task a cross-department asset management team to prepare the AMPs and coordinate all required
inputs.
• Consider the maturity levels and organisation objectives and targets and determine at what level the
AMPs should be targeted, ranging from a minimum level to an advanced level, with other levels between
these extremes to suit the organisation.
• Monitor the implementation and effectiveness of the AMPs once they have been approved, adopted and
communicated.

4. Service Delivery Models
Service delivery models were introduced earlier in the GAM in Part 3, Section 4.5 as one of the enablers of
the asset management business process. Before an agency decides on which model to use, the activities
need to be firstly defined and assessed for suitability.
Considerations in adopting an appropriate service delivery model are highlighted in ISO 55001: 2014,
Clauses 6.2.2, 7.1 and 8.3, require the organisation to determine what will be done and how it will be
resourced, whether internally or outsourced, to meet the asset management objectives.
4.1 Core and Non-core Activities
It is important to identify core and non-core activities before an agency decides how to deliver these
activities. These activities can be grouped broadly into the following areas:
• planning and asset management
• maintenance and operations management
• projects, design and construction management
• operations and maintenance delivery
• capital projects construction.
4.2 Models
If a road agency chooses to deliver the service internally, then it will assume all the risk. When choosing to
deliver from an either an internal or external source, there are several models an agency can use to manage
risk. These models are now briefly discussed. For more information, refer to Austroads (2014a, 2014b,
2014c):
• contracting by schedule of rates
• direct management
• contracting by lump sum
• partnering or alliances
• public-private partnership (PPP).
The delivery model adopted depends on the scale or scope of the service/project and the inherent
associated risk. In addition, the current state of the market for the service, or its contestability, can influence
timing and delivery arrangements. With small, well-defined, projects that are relatively low risk, the use of
in-house resources (direct management) will typically be appropriate. This approach may also be appropriate
for higher-risk projects that are poorly defined but relatively small in scale.
On the other hand with large-scale projects that involve less prescriptive outcomes, that is, outcomes that
can be better defined in terms of performance, a range of delivery options is available that can involve
complex contractual arrangements, alliances or partnerships as shown in Table 4.1.

Table 4.1: A selection of service delivery models
Delivery model Suggested appropriate application

In-house Minor works or maintenance
Design only, subsequent construct only Small to medium repetitive type e.g. standard bridge
replacements
Hybrid, detail and construct (part design and construct) Medium to large projects such as major
maintenance/improvement works
Design, novate and construct (DN&C) Transference of risks and benefits e.g. from client to a
third party which replaces the original party as a party to
the contract
Design, construct and maintain (DC&M) Contract delivery for large scale works
Design, development and construct (DD&C) A single or series of contracts delivered
Commercial development: Projects where funding is usually sourced commercially
i.e. Build, own, operate and transfer (BOOT), Build, PPPs, e.g. tollways and tunnels
operate and transfer (BOT), Public, private partnership
(PPP) Design and build (DB), PPP, Design, build and
operate (DBO), PPP, Design, build, finance and operate
(DBFO), PPP (Concession)
Alliance, PPP (Alliance), PPP, Design and construct Complex projects requiring a high level of cooperation
(D&C), PPP, Design, development and construct between parties
(DD&C), PPP, Design and construction management
(DCM)
Source: Adapted from Austroads (2009).
4.3 Risk Management
Delivery of capital projects can be seen as a risk sharing arrangement. Risks need to be identified prior to
commencement of a project and tracked during its progress. Initial identification of risks can define the
project delivery options.
With small-scale projects undertaken in-house all the risk is carried by the owner/client. Conversely, with
large-scale projects, the owner/client can reduce risk by packaging the project in such a way that the
contractor carries the risk by ultimately, in the extreme case, transferring ownership of the project to the
contractor for a specified period of time.
There are usually commercial consequences in transferring risk to contractors as they will include a risk
premium in their bid price to allow for risk. Where there is high contestability for the project, the premium for
risk may be reduced by tenderers in order to secure the project. Consequently, contractual arrangements
need to clearly define who is carrying/sharing the risk for the project so that completion of the project is
secure and resort to litigation minimised. A detailed description of the various project delivery packaging
options is documented in Austroads (2007).
4.4 Resources and Scheduling
Adequate human and material resources need to be made available for managing projects. The type, quality
and quantity of these resources depend on how the project is to be delivered and packaged. Specialist skills
and knowledge should be matched to the demands of the project. Clear lines of accountability also need to
be defined for all aspects of the project.
The major resources are human. Project success, apart from delivery arrangements, can largely depend on
sound human relationships between all parties involved in the project that is focused on completing the
project to meet the desired performance and program requirements.

Resource levelling is a means of optimising the resource needs over the life of the project. All project
resources need to be continually informed of project progress and their contribution to it. Resource levelling
is based on scheduling the tasks involved in the project to define the resource demands of the project over
time. Scheduling the project involves the following steps:
• clearly identifying all major phases of the project and key milestones
• defining the project tasks in detail to develop a coherent project program using known techniques such
as, the critical path method (CPM) and Gantt charts
• allowing for known risks and contingencies in the above scheduling
• in the project program, regularly monitoring and updating to reflect current progress and to identify where
additional resources may be required to maintain the original program where relevant.
The scheduling process needs to be sufficiently detailed to maintain control of the project which should be
balanced against the resources needed to monitor and regularly update the project program.
An example of the NZTA’s procurement strategy is presented in Case Study 3.
Case Study 3: NZTA Procurement Strategy

NZTA has taken a strategic approach to managing the procurement of
professional services and physical works for many years, continually
evolving and improving practices and publishing its most recent
approach in the State Highway Procurement Strategy 2014 (NZTA
2014). This document covers both capital projects (asset improvements)
and maintenance and renewals (asset management) providing guidance
on the selection of the appropriate delivery model based on assessment
of a range of strategic factors, including risk, competition and resource
capability within the supplier market.
The Strategy also serves to communicate with the supplier market,

providing a basis for the market to invest in people and plant over time.
The delivery methods are categorised in the matrix below, through a

spectrum ranging from ‘traditional’ through to ‘pure alliance’. All activities
relate to works and services procured on the open market and delivered
by the private sector, with in-house capability largely limited to planning,
procurement and contract management. In the alliance forms, collaboration is a key ingredient.
Key criteria used in the delivery model selection process include: scale, complexity, innovation potential,
timing and urgency, supplier market conditions, risk profile, stakeholder involvement and customer
requirements, level of client involvement, focus on non-cost areas, tangible demonstration of value for
money, and flexibility to deal with change. Consideration of these factors is illustrated with respect to
different models in the third diagram.
The Strategy discusses each model type, along with an explanation of the advantages and disadvantages
of each. This helps the market to understand NZTA’s strategic approach and helps businesses develop
their capability to respond.


5. Asset Management Status Assessment
Asset management maturity assessments were introduced earlier in the GAM, such as in Part 2, Section 6.1
as part of the asset management improvement process and in Part 3, Section 4.6 as one of the enablers of
the asset management business process. This section provides more specific guidance and examples of the
tools that can be used by road agencies.
5.1 Maturity Assessment Frameworks and Approaches
Assessment is an important method of determining asset management maturity and measuring

implementation progress. Assessment can also be used to benchmark practices against other similar
organisations. This can be helpful when an agency wants to identify those organisations employing best
practice and where it can learn from others’ experiences, adopting practices appropriate for their own
organisation.
There are numerous asset management maturity assessment tools available. Those likely to be of most
interest to Australia and New Zealand road agencies include:
• IAM ‘Self-Assessment Methodology Plus’ spreadsheet-based tool which has already been used by some
Australian state road agencies (IAM 2015).
• Gap analysis processes and tools for asset management practices based on the IIMM (IPWEA 2015)
which is commonly used in New Zealand.
• American Association of State Highway Officials (AASHTO) (2011a) Transportation Asset Management:
Volume 1 (TAM 1) describes a high level self-assessment process and AASHTO (2011b) Transportation
Asset Management, Volume 2 (TAM 2), contains a subsequent more detailed gap analysis process for
Departments of Transports (DoTs) in the USA.
• Government assessment tools, such as the New Zealand Treasury 3 asset management maturity tool
used in assessing government agencies managing built infrastructure, such as in the health and
education sectors, and increasingly being used by other sectors such as local government.
A number of these approaches are now discussed further.
5.1.1 IAM ‘Self-assessment Methodology Plus’ (IAM 2015)
This tool has three different modules all in the same spreadsheet application, highlighted in Figure 5.1:
• PAS 55 assessment – now superseded by ISO 55001:2014
• ISO 55001:2014 assessment – assesses the level of compliance with each of the ISO 55001:2014 ‘you
shall’ clauses
• 39 Subjects assessment – developed from the ‘Asset Management Landscape’ comprising 39 asset
management subjects, published by the Global Forum on Maintenance and Asset Management
(GFMAM) (2014) and adopted by the IAM (2014a) for application in the IAM tool. The home page for the
IAM Self-Assessment Methodology Plus tool is shown in Figure 5.1.
3
http://www.treasury.govt.nz/statesector/investmentmanagement/review/icr/information/assetmgmt.

Figure 5.1: Home Page for IAM Self-Assessment Methodology Plus tool
Reset Score PAM PAM RADAR Chart PAM BAR Chart PAM Summary Report PAM Questions PAM Chart Data Home Page
Add Interviewee Score ISO ISO RADAR Chart ISO BAR Chart ISO Summary Report ISO Questions ISO Chart Data
Score AMA AMA RADAR Chart AMA BAR Chart AMA Summary Report AMA Questions AMA Chart Data
PAM/ISO/AMA V3.1 Assessment Details
Enter the following details: Company Name, Assessor Name, Date of Assessment, Interviewees names.
Use the buttons above to navigate around the workbook. Click on the 'Score PAM', 'Score ISO' or 'Score AMA'
button to open the scoring forms.
If more interviewees are required, click the 'Add Interviewee' button above or on the '+' sign on the input forms.
To delete all data associated with an Interviewee, click on the 'Score PAM', 'Score ISO' or 'Score AMA' button,
select the Interviewee to be deleted and push the 'Delete Interviewee' button.
Please be aware that this will delete the Interviewee from the PAM, ISO and AMA assessments.
Company Name:
Assessor Name:
Date of Assessment:
Interviewee 1
Clear Form Contents

To clear previous form entries, click the 'Reset' button, Please note all comments, scores, graph data, interviewee details will be deleted and unrecoverable. If
you wish to keep completed assessments forms and graphs, save the workbook with a new name before clicking 'Clear All'.
Copyright
The IAM Self-Assessment Methodology and associated guidelines, maturity scale and tool are copyright of the Institute of Asset Management.
Disclaimer
The IAM accepts no responsibility for any problems, costs or damages resulting from the use of the IAM SAM+ Assessment Methodology and associated
guidelines, maturity scale and tool however caused.
Source: IAM (2014a).
This tool includes specific questions that must be answered and rated using a scale from 0 to 5, with each
clause and sub-clause of ISO 55001 being scored in the ISO 55001 module. Users can also rate each of the
39 subjects illustrated in Figure 5.2.
A score of 0 means the organisation has not recognised the importance of the specific requirement or has
chosen not to develop it. A score of 3 means the organisation meets ISO 55001 requirements or a level of
‘competent’, while scores of 4 or 5 indicate that practice exceeds the Standard’s requirements. A description
of these maturity levels is provided in Table 5.1.
The IAM tool and associated maturity scales help agencies understand where they are at now against the
requirements and to identify actions needed to close the gaps.
5.1.2 IIMM-based gap analysis tools
Earlier versions of the IIMM described gap analysis approaches to improving asset management practices
and various tools were developed by the private sector to help agencies evaluate their current position. With
the advent of these IAM tools and the focus on ISO 55001, while still relevant, these tools are
complementary and more appropriate for assessing ‘how well’ agencies are implementing specific business
processes, using their information systems, and capturing the right data. IIMM focussed tools were used by
some agencies as a supplement to the higher level IAM approach above, allowing a deeper analysis and
more comprehensive understanding of current status.
Agencies using these types of tools will typically want to understand how they compare to ‘best practice’ and
decide for themselves where they want to be positioned on the IIMM’s five-level maturity scale shown in
Figure 5.3.

Figure 5.2: Asset management landscape subjects
Source: IAM (2014a).
Table 5.1: IAM asset management maturity levels
Asset
ISO 55001 management
Asset management landscape
maturity landscape ISO 55001 description
subject: description
level subjects:
maturity level
Level 0 – Level 0 – The organisation has not recognised the The organisation has not recognised the
Innocent Innocent need for this requirement and/or there is need for this subject and/or there is no
no evidence of commitment to put it in evidence of commitment to develop it
place
Level 1 – Level 1 – The organisation has identified the need The organisation has identified the need
Aware Aware for this requirement, and there is for this subject, and there is evidence of
evidence of intent to progress it. intent to progress it.
Level 2 – Level 2 – The organisation has identified the The organisation has identified the
Developing Developing means of systematically and means of systematically and
consistently achieving the requirements consistently achieving competency in
and can demonstrate that these are this subject and can demonstrate that
being progressed with credible and these are being progressed with
resourced plans in place. credible and resourced plans.
Level 3 – Level 3 – The organisation can demonstrate that it Refer specific L3 maturity criteria
Competent Competent systematically and consistently achieves (316 questions within the tool)
relevant requirements set out in ISO
55001:2014.
Level 4 – Level 4 – Requires evidence to support higher The organisation can demonstrate that it
Beyond ISO Optimising rating. is systematically and consistently
optimising its Asset Management
practice, in line with the organisation’s’
objectives and operating context

Asset
ISO 55001 management
Asset management landscape
maturity landscape ISO 55001 description
subject: description
level subjects:
maturity level
Level 5 – Requires evidence to support higher The organisation can demonstrate that it
Excellent rating. employs the leading practices, and
achieves maximum value from the
management of its assets, in line with
the organisations’ objectives and
operating context
Figure 5.3: IIMM five stages of maturity
Section 2.1.1 of the IIMM (IPWEA 2015) describes the characteristics of an ‘advanced asset management
organisation’ as:
• Understanding of the strategic context – considers the impacts that the external, internal and customer
environments will have on the asset management system.
• Knowledge of asset ownership – plans for asset renewal and maintenance activities with a sound
knowledge of what assets the agency owns and where these assets are located.
• Knowledge of asset management objectives and levels of service – knows how the objectives match
customers’ expectations and willingness to pay and knows that they are aligned with corporate objectives.
• Ability to predict future demand from customers – understands the impact on the asset and is able to
predict future investment requirements with confidence.
• Knowledge of physical condition of assets – has the data to enable robust prediction of future
maintenance and renewal requirements, costs, liabilities and risks.
• Knowledge of performance of assets (reliability) – has the data to be able to assess the effectiveness of
operational, maintenance and capital works programs. This requires data on the types of failure, number
of customers affected and the ability to predict when performance will drop to an unacceptable level.
• Knowledge of current utilisation and ultimate capacity – can identify when to upgrade or augment existing
assets. Lack of understanding of capacity and utilisation can lead to over-investment in infrastructure and
inefficient use of scarce funds.
• Ability to predict performance failure – can assess and understand the various ways an asset may fail to
deliver its required level of service or reach the end of its effective life.
• Ability to analyse alternative options to address performance gaps – knows how to mitigate predicted
asset failures. Strategies may include options such as changed operating procedures, maintenance,
renewal, creating new assets, asset disposal and demand management.
• Ability to prioritise asset management programs – prioritises projects to suit available budgets, so that
projects are balanced and optimised against risk, cost, and performance parameters. This enables
financial resources to be prioritised when budgets are constrained.
• Ability to optimise O&M activities – minimises O&M costs through an optimised blend of planned and
unplanned maintenance activities and cost-effective operations strategies.

Reflecting these attributes, gap analysis categories are grouped reflecting a focus on business practices and
processes, information systems and data, with a separate category covering the quality of AMPs:
• Asset knowledge – the appropriateness, reliability and accessibility of data and the processes associated
with the use and maintenance of asset data.
• Asset management planning processes – the appropriateness and effectiveness of business processes
used in asset management planning, including failure analysis, risk management, service level planning
and long term financial planning.
• Lifecycle management process – the appropriateness and effectiveness of life-cycle decision making and
implementation processes including operations, maintenance and capital works decision making from
planning through to asset handover.
• Asset management plans – the appropriateness and completeness of the AMPs in terms of the asset
management business cycle and in developing long term, optimised life-cycle programs which balance
service levels, risk and cost.
• Information systems – the appropriateness of the systems that support asset management business
processes, enable decision-making and store/manipulate data.
• Organisational practices – the appropriateness of wider business processes and tactics that support
asset management outcomes, including organisational, contractual and people aspects.
5.1.3 NZ treasury maturity assessment tool
This tool was first developed in 2011 recognising the need for Government to realise its economic goals,
deliver better public services and have effective management of Crown assets. In making the best possible
future investment decisions, agencies need to be able to give confidence that the Crown’s assets and
liabilities are appropriate and well managed.
The tool is based on the IIMM (IPWEA 2015) maturity approach with a single score for each of the
17 sections of the IIMM shown in Figure 5.4. Scoring is in increments of 5 on a 0–100 scale, summarised in
Figure 5.5, whilst a typical output is shown in Figure 5.6.

Figure 5.4: NZ Treasury maturity assessment subject areas
Figure 5.5: NZ Treasury maturity assessment scale
Aware Minimum Core Intermediate Advanced
0-20 25-40 45-60 65-80 85-100

Figure 5.6: NZ Treasury maturity assessment typical output
Source: NZ Treasury (2015).
5.1.4 Summary
Before conducting an asset management status assessment, it is important for an agency to adopt an
assessment framework and if ISO 55001 is important to the agency, then a framework that aligns with that
standard. Ongoing assessment allows an agency to monitor its progress as its asset management system
and supporting processes continue to be improved. Also, using an industry standard approach allows an
agency to benchmark with other agencies to determine best and appropriate practice.
5.2 Asset Management Assessment
Once the appropriate framework for assessment has been determined, the assessment can be planned and
conducted. It is important to recognise that the assessment process is a useful tool in ongoing asset
management improvement planning and contributes to the development of the asset management culture in
an organisation.
This importance is reflected in ISO 55001:2014 with reference to:

• internal audit – Clause 9.2.
• management review shall consider the audit results – Clause 9.3.
Refer also to Clause 5.5.4 of IAM (2014a) for further guidance.
5.2.1 Planning the assessment
An asset management status assessment can be conducted internally (self-assessment) or externally (by
engaging an independent third-party). There are advantages and disadvantages in both approaches. For
example, an external independent party brings fresh perspectives and ideas, while internal staff best know
the organisation and the issues. A collaborative approach which allows both points of view to be captured is
probably optimal.

When planning an assessment, an agency should also address the following key issues:
• the appropriate questions to be asked within the assessment tool
• weighting the scoring criteria based on its importance to the agency and its customers and stakeholders
• establishing the appropriate target maturity level for the agency
• how it will identify and prioritise the gaps
• having a cross-functional involvement to allow a complete picture of the current state.
5.2.2 Conducting the gap analysis process
The purpose of the gap analysis is to determine the areas that require improvement and to allow these gaps
to be prioritised. Gap analysis is part of the continuous improvement process and is essential to any good
asset management process and should be repeated at appropriate intervals. These can be as frequent as
six months if the development and improvement of asset management is rapid, as it is likely to be in its early
stages or may occur once every three to five years when the process is more mature. It is often appropriate
to align the timing with the update cycle for AMPs.
It is important to note that the identification of gaps and areas of weakness can often occur outside the
assessment cycle. This does not necessarily mean that a new assessment should be conducted, however, in
the spirit of continuous improvement any newly identified improvement actions should be considered and
prioritised against others in the improvement plan. They may alternatively be deferred until the next review
cycle if of lower significance.
There is sometimes concern that the gap-analyst (assessor) may over-rate or under-rate an agency,
particularly if the analyst is from within the organisation. While this concern is valid, the risks may not be
significant if the purpose of the analysis is simply to identify areas for improvement and to prioritise them.
Provided the improvements are identified it is of less significance what score is given to current performance.
The effect of over-scoring or under-scoring may be to assign an incorrect label to the agency’s asset
management maturity, which could be an issue if benchmarking was proposed. This is most likely to occur at
the early stages of implementation and will be largely self-correcting as the level of maturity in the agency
develops. Later reviews will be undertaken by people, possibly the same people, whose level of expertise will
have grown and thus the judgments will become more aligned to a repeatable value with each analysis. The
key is for each analysis to start with a ‘clean sheet’ and not to necessarily take the results of the previous
analysis as its starting point.
As the analysis is an internal tool and variations by different analysts are possible, care should be taken in
comparing the results of different organisations. While the method can be used to compare with other
agencies in terms of best practice, the results may not be suited for that purpose unless they are
appropriately calibrated.
5.2.3 Examples of gap analysis assessments
Typical output from analysis using the IIMM-based tool is shown in Figure 5.7 and Figure 5.8. In this
illustrative example, the maturity levels are banded in six steps from innocence to best practice. Each
diagram shows the current and target levels of maturity. The latter diagram expands out the results for asset
knowledge into ten elements, showing a considerable variation in the quality of the data held by the agency.

Figure 5.7: IIMM-based tool – gap analysis summary results
Figure 5.8: IIMM-based tool – gap analysis results for asset knowledge
Although PAS 55 (IAM 2017) has been superseded by ISO 55000, it contains the same asset management
principles as ISO 55000. An example of a road agency carrying out a strategic assessment based
information contained in PAS 55 (IAM 2017) is described in Case Study 4. This assessment revealed relative
strengths and weaknesses across 28 dimensions, ranging from policy to operational management.

Case Study 4: Queensland Department of Transport and Main Roads (TMR) Gap Analysis and
Improvement Plan
In 2011, the TMR engaged a consulting engineering firm to undertake a review of its asset management
practices.
The principal objectives of this benchmarking were to:

• evaluate TMR’s current asset management maturity compared with PAS 55 and leading practice
• identify key directions for improvement in TMR
• inform TMR’s AMP and strategy/action plan,
TMR has made significant gains in recent years in the promotion of a strategic approach to managing the
organisation’s asset portfolio. As part of the development process, TMR considered it important to
undertake a review across its entire asset portfolio, the results of which would form part of a program of
improvement initiatives.
The approach to the benchmarking assessment included:

• a high-level review of key corporate documents and the current asset policy and strategy
• engagement with senior management
• workshops at an organisation-wide level, including corporate branches and regional delivery groups
• interviews with selected staff where specialist information was required
• scoring and benchmarking of current organisational maturity using the consultant’s proprietary model,
which incorporated the compliance requirements of PAS 55
• identification of current strengths and improvement opportunities and development of agreed
improvement targets for the coming five years.
An example of PAS 55 benchmarking assessment summary follows:

The benchmarking assessment formed the foundation of TMR’s asset management system improvement
plan that identified and prioritised a list of key initiatives to improve TMR’s capability.
5.2.4 ISO 55001 requirements
ISO 55001:2014 has particular requirements for monitoring and reviewing the asset management system
and internal audit (refer to Part 2, Section 4.3) in order to ensure ongoing effectiveness, as well as
improvement of the asset management system (refer to Part 2, Section 4.3).

ISO 55002:2014provides extensive commentary on what this means for asset management, and it reference
should be made to it for further information. Coverage includes:
• 9.1 Monitoring, measurement, analysis and evaluation:
– processes for the systematic measurement, monitoring, analysis and evaluation of the assets, asset
management system, and asset management activity
– making reference to the AMP and objectives
– performance indicators, including their relationship and alignment
– evidence-based (e.g. proactive management, training and competencies, compliance, etc.).
• 9.2 Internal audit
– frequency and scope
– support learning and improvement
– self-assessment driving continual improvement.
• 9.3 Management review
– reviewing the assets, asset management system, asset management activity, policy, objectives and
plans to ensure ongoing suitability, adequacy and effectiveness
– nature of the inputs and outputs.
• 10.1 Non-conformity and corrective action
– establishing plans and processes to control events and manage associated consequences
– processes for investigation of asset related events
– processes for implementing corrective actions.
• 10.2 Preventive action
– may be predictive actions
– addressing the root causes of potential failures before they occur
– documenting the processes.
• 10.3 Continual improvement
– identifying, assessing and implementing opportunities for improvement in asset management
processes
– may be top-down or bottom-up
– seek out knowledge about new asset management related technology and practices
– steps for processing improvement opportunities.
5.2.5 Benchmarking
Benchmarking is a useful way of comparing where an agency is at in relation to other similar agencies, using
the assessment tools described above or some other comparative approach.
Benchmarking in Australia includes, for example, procurement and road project construction costs (Transport
and Infrastructure Council 2014). The study found that:
• road class is the most significant factor influencing average project costs – average costs of urban and
rural freeways/highways are around $6.0 to $6.5 million per lane-kilometre, while lower standard rural
arterials average around $3.0 million per lane-kilometre

• project management costs typically comprise around 7% of total costs while design and investigation
costs typically comprise around 5-6%
• the project sample provides no clear evidence of any time trend in average project costs over the
previous five years.
In the water sector, the Water Services Association of Australia conducts a regular comprehensive
benchmarking exercise of agencies within Australia and New Zealand as well as globally. An example of
benchmarking practised in the Water Sector is provided in Case Study 5.
Case Study 5: Asset Management International Benchmarking in the Water Sector
Every four years since 2004, the Water Services Association of Australia (WSAA) has conducted its
international asset management benchmarking project. In 2015, the project underwent a name change to
Asset Management Customer Value (AMCV), to better reflect the increased customer focus of the industry
and to better integrate with ISO 55001:2014.
In the 2016 round, 44 participants from Australia, New Zealand, the USA, Canada, the UK and Japan
completed the assessment, which comprised 506 defined measures of asset management practices
covering development; documentation; coverage and frequency of application; and effectiveness over
seven areas of asset management (depicted below).
Before commencement of the benchmarking assessment, participants were required to complete a survey
which determined the drivers of their business, how important these drivers were to current and future
practices, and their preparedness to respond. The consistency of the benchmarking process was
maintained through verification of those participants that self-assessed and facilitated assessment for
others.
After completion of the survey, participants were provided with an individually tailored report, which
benchmarked their assessment with their peers (both the whole cohort as depicted, and a variety of peer
groups based on size, sector and region) and provided suggestions for improvement of their asset
management practices. In addition, an industry report was prepared based on the data of all participants
which gave insights into the outcomes of the project, investigated the differences between various peer
groups, demonstrated industry trends and provided a blueprint for future improvement initiatives.

For participants, the benefit of completing the AMCV was not only in the reports provided and the
benchmarking process, but also participating in the Leading Practices Conference. These conferences,
held in Melbourne and Los Angeles, allowed participants to come together and share their leading asset
management practices. The conferences allowed participants to meet face-to-face and discuss issues
facing the industry and novel ways to mitigate these issues. A compendium of this conference was
published as a reference for all participants to continue their journey in asset management maturity. For
further information on the project refer to www.wsaa.asn.au/about-us/asset-management-customer-value-
project-amcv.

6. Continuous Improvement
Current asset management processes within road agencies and corporate entities can all benefit from an
appraisal of current practice to determine the need for ongoing improvement. Agencies should pursue
options for greater efficiency, increased knowledge, better technology, training, etc. to achieve increased
community benefits.
Asset management continuous improvement should be part of the agency’s business improvement program,
and improvement planning undertaken at periodic intervals. An assessment of business processes, such as
described in the previous section, forms a core component of ‘good practice’ asset management. Using the
assessment results, specific improvement programs can be tailored to meet the needs of the organisation.
Opportunities for continuous improvement are typically centred on the following themes:
• aligning asset management practices with ISO 55001:2014 requirements
• strengthening organisation focus on asset management, including roles and responsibilities, culture,
competencies and training
• developing AMPs and SAMPs
• addressing existing gaps in asset data, especially in valuation, life-cycle costs, age and lives
• addressing existing gaps in processes, especially in defining levels of service, asset failure prediction,
life-cycle decision making incorporating risk and planning for sustainability
• addressing the lack of tools available for use in renewals planning and operation and maintenance
monitoring
• developing AMPs
• developing advanced asset management information systems functionality.
An essential part of any continuous improvement program is developing team and individual competencies to
achieve best practice or the target level of maturity. This requires a people-oriented approach, in which it is
essential to understand the roles and responsibilities to be filled and to establish appropriate levels of asset
management competence, as described in Section 2.5.
The phases of the continuous improvement life-cycle together with the key steps within each phase are
presented in Table 6.1. Each phase is further expanded in the subsections below.
Table 6.1: Continuous improvement life-cycle
Continuous improvement life-cycle Key steps

Assess gaps in current performance • Current asset management capabilities
(Section 5.2) • Current performance
• Current issues and concerns
Identify future state and improvement • New/improved asset management capabilities
actions (Section 6.1) • New performance objectives
• Forecast performance
• Anticipated new issues and concerns
Prioritise actions and develop • Create change strategy
improvement plan (Section 6.2 and • Identify change catalyst
Section 6.3)
• Identify champion
• Define specific action
• Set action priorities
• Line up resources and commitments

Continuous improvement life-cycle Key steps

Deliver the actions proposed • Perform the necessary actions
(Section 6.4)
Monitor outcomes and adjust the plan • Monitor results
(Section 6.5) • Identify new issues and concerns
The following sections expand on each step of the continuous improvement life-cycle. Refer also to the IIMM
(IPWEA 2015) Section 4.6.4 and Section 5.6.6 of IAM (2014a) for further details.
6.1 Identify Improvement Actions
The asset management improvement process should identify weaknesses in asset management practices,
systems and data, and scope forward improvement tasks on an ongoing continuous improvement cycle. The
process should ensure that people are appropriately trained in asset management and that their skills are
aligned with achieving the overall asset management objectives. The outcome should be a list of
improvement actions to close the gaps.
There are many ways to identify improvements in an agency and they arise from multiple sources whether it
is a formal or informal process. For example:
• asset management maturity assessments
• management reviews
• asset management audits
• operational reviews
• valuation reports.
6.2 Prioritise Actions
Once the gaps have been identified based on the current and future state, the next step is to prioritise the list
of improvement actions and assess the benefits and costs of each action. This is taken to determine which
actions have the biggest impacts on the organisation and its customers and stakeholders.
One approach is to categorise the actions into three groups:

• Mandatory – these are actions that have to be performed due to regulatory or legislative requirements or
actions to ensure the asset management system can be implemented successfully; for example,
developing AMPs.
• Quick wins – these are short-term gains that the organisation decides to take to create momentum in
implementing the asset management system.
• Medium-long term – these are actions that will benefit the organisation in the medium to long term. Such
actions normally undergo a value-for-money assessment to assess their benefits before they are
implemented.
Figure 6.1 presents another way to prioritise improvement actions, i.e. to assess each item in a matrix which
shows the benefits and implementation cost for each. Priority is determined from high-benefits
low-implementation cost down to low-benefits high-implementation cost.

Figure 6.1: Prioritising improvement actions using cost-benefit-analysis
Source: IPWEA (2015).
An example of how one agency has prioritised its improvement plan is presented in Case Study 6.
Case Study 6: How One Agency Prioritised its Improvement Plan
In 2016 DPTI SA carried out an independent asset management maturity assessment and gap analysis,
using a suite of assessment tools, including the IAM 39 Subjects (IAM 2014a), ISO 55001:2014 and an
IIMM aligned tool. This provided DPTI with a comprehensive picture of its current status, with an objective
of moving practice to at least the level of ‘Competent’ in all areas.
Potential business improvements were grouped around five key themes:

• asset management framework
• people
• processes
• data
• technology and tools.
Prioritisation of the improvement plan was based on both the size of the gap between current and desired
practice, and secondly on the perceived benefits and costs of the action. This step used a 9-box
Impact-Difficulty matrix illustrated below, with individual actions scoring on an ‘A’ to ‘I’ scale, ‘A’ being
highest priority and ‘I’ lowest.

Difficulty assessment
Difficulty Resources (how much Ease (how hard will it be Time (how long will it take?)
rating resource will be to do?)
needed to do this?)
Low Low level of resources/ Easy, few if any hurdles Short timeframe to accomplish – typically
financial cost needed or issues to resolve weeks
Medium Modest investment in Modest, can be done with Modest timeframe to accomplish – typically
resources/finance some effort weeks to months
High Substantial investment Hard, may be different Significant timeframe to accomplish – may
in DPTI resources agendas or points of view take 6 months to 2 years or more
and/or financial to resolve, a big effort
commitment
Benefits/Impacts assessment
Benefits Legislation/Standards Risk (if we don’t do this Business Gap Size (how big
/Impacts (does the action what could happen?) Efficiency/Cost is the gap between
rating resolve an issue?) Savings (how much current and
better could we be?) desired?)
Low Not a requirement Not a risk issue – e.g. Minor or no Small gap – <1
issue (e.g. ISO) minimal impacts, minimal improvements to
financial losses, no operational efficiency
credibility or public
relations issues, minimal
if any adverse effects
resolved
Medium Will contribute to a Minor – moderate risk Moderate Moderate gap – 1

compliance issue mitigation – e.g moderate improvements to to 2
(e.g. ISO) impacts, manageable operational efficiency
financial losses, possible
adverse effects resolved
High Fully resolves a Major risk mitigated – e.g. Greatly enhanced Significant gap – >
requirement issue major impacts, significant operational efficiency 2
(e.g. ISO) financial losses, loss of
credibility, significant
adverse effects on
society/economy/
environment resolved

The benefits associated with achieving these initiatives were summarised as:
• increased business efficiency
• improved internal alignment and collaboration
• positive culture change
• improved communication and reporting
• improved alignment with stakeholder needs and expectations
• improved knowledge about the assets
• reduced risks associated with operating the assets
• reduced total costs of operating the assets
• improved performance of the assets
• reduced safety risks of operating the assets
• reduced environmental impact of operating the assets
• improved reputation of the organisation
• Improved regulatory performance of the organisation.
6.3 Develop Asset Management Improvement Plan
The improvement plan is a key document which brings the results of the self-assessment and gap analysis
processes together and defines how the agency intends to make progress towards higher levels of asset
management maturity. The improvement plan should identify the tasks to be carried out, when they will be
done, who has responsibility and the resources that need to be allocated.
The improvement plan including lists of actions that should be documented in AMPs, including defining the
financial costs, resources required and the proposed timelines for achieving the actions. Refer also to
Section 3 on AMPs.
The improvement plan should contain the following minimum information, also ensuring that it is clear and
concise:
• activity and area (roads, bridges, etc.) where the improvement should be performed
• reference to the asset management plan
• improvement action name and priority
• status and comments
• dates showing when the action was identified, and the target start and end
• person responsible
• measures of effectiveness identified if possible
• management and monitoring processes defined.
6.4 Implement Asset Management Improvement Plan
Implementation of the improvement actions identified above should be coordinated by the Asset
Management team, with implementation costs incorporated in the agency’s budget. Progress should be
communicated across the organisation to demonstrate to staff that the plan is effective and that its goals will
be achieved.

Good project management practices should be applied when implementing the improvement plan. Key
internal stakeholders should be involved through the improvement process. It is important for the project
manager to ensure that the following tasks are incorporated as part of implementation:
• confirm the project brief and scope for each action
• identify and confirm the resources required to deliver the actions in the improvement plan
• provide opportunity to train staff to close any skill gaps
• monitor and control the project progress, cost and scope
• perform an audit on the output of the project
• periodically review project objectives, scope, team and adjust plan with the involvement of internal
stakeholders.
6.5 Monitor the Results
The asset management leadership team should be responsible for monitoring the results of the
implementation plan. This is not just completing the items in the improvement plan, but rather whether the
improvement plan achieves the asset management targets and performance measures set through the
objectives.
Performance measures are typically set by management and could include, but are not necessarily limited
to, the following areas:
• financial performance
• improvement to O&M response times
• staff utilisation and productivity
• staff engagement
• improvement in customer survey results.
The results should be communicated to the wider organisation through team meetings and forums to show
that leadership is leading the organisation’s asset management effort and, if appropriate, achieving cultural
change.
ISO 55001:2014, Clause 9.3, discusses the role of management review to ensure the asset management
system is adequate and effective in achieving the asset management objectives.
6.6 Continuous Improvement Culture
Once the actions in the improvement plan have been implemented and the results evaluated, a new starting
state and a new round of enhancements should be commenced. On the other hand, if the improvement plan
has not been implemented or has not been effective, it is necessary to determine why not, before engaging
in the next cycle. By going through the improvement planning cycle, a continuous improvement culture
begins to develop which is an important contributor to:
• improving and maintaining asset management maturity levels
• growing the commitment to asset management throughout the organisation
• meeting the requirements of ISO 55001:2014 asset management standard
• meeting the requirements of the agency’s other management systems generally.

The asset management leadership team plays an important role in developing a continuous improvement
culture within the agency. There are a few ways to achieve this, including:
• Prepare presentations and documents to describe, in simple terms, what asset management is. The
materials should be specific to each asset portfolio and demonstrate the organisation’s commitment to
achieving the goals.
• On an ongoing basis, communicate the vision, direction and strategy for implementing asset management
within the agency. This can be accomplished in written or oral form, in regular briefings and internal
communications.
• Leadership team members should personally explain to staff and key stakeholders the benefits they, the
organisation and individuals can expect to gain from improving asset management practices.
6.7 Other Management Systems
Besides the asset management system, there are other management systems within an organisation. The
asset management system is not a separate management system, rather it should be integrated, support
and complement existing systems and vice versa. Other systems may include:
• quality management systems (ISO 9001:2015)
• environmental management system (ISO 14001:2015)
• health and safety management systems (AS/NZS 4801:2001)
• risk management system (ISO 31000:2009).
An example of the learnings from an Audit NZ 2010 review of asset management progress in NZ local
government, or similar for road agencies if available, is presented in Case Study 7.
Case Study 7: Learnings from Office of the Auditor General 2014 review of AM practice in NZ Local
Government
In New Zealand, the Office of the Auditor General (OAG) is

responsible for auditing all New Zealand’s public entities, a role that
has been in place since 1840 and which is independent of central and
local government. Public entities, including local government, are
accountable for their use of public resources and the powers that
Parliament gives them. Parliament seeks independent assurance from
the Auditor-General that public entities are operating and accounting
for their performance in the way Parliament intended.
In this role, the OAG reports on issues and concerns such as funding
and management challenges facing infrastructure sectors, such as
water and roads (NZ OAG 2014), networks managed by local
government in New Zealand. Such reviews and their findings result in
recommendations for improved asset management practices.
In their report, the OAG analysed and provided an overview of the

state of the assets, where and when major investments were needed,
and whether asset management practice was giving local authorities
the information they needed to continue providing services into the
future. While short to medium term planning, decision-making and funding arrangements were generally
adequate, more needed to be done to manage infrastructure and financial strategies for the long term,
given the wider economic and population changes being faced.

Of concern was the ratio of forecast renewals expenditure to depreciation in 2012-22 long-term plans,
showing a downward trend in asset reinvestment – a gap which could be $6-7 billion by 2022. This raised
questions around local government asset planning, depreciation practices, and capital expenditure
management, leading to recommendations around planning and funding capital investment and
considering the effect of lifecycle costs (operations, maintenance, renewals, and depreciation).
Other key findings included the need to use the right data more effectively in decision-making and the
need for planning and risk management to inform decision-making.


7. Example of Approach to Implementation
A three-phased approach for an agency in improving asset management maturity, starting from an early
stage of evolution and moving towards best practice is illustrated in Figure 7.1. The first stage is to build a
sound base from which to establish best practice asset management. Over the long term, it is important to
continually improve in order to maintain momentum and not fall behind best practice.
Figure 7.1: Three stages of implementation and continuous improvement
7.1 Stage One – Establish Foundations for Asset Management
The following actions would be carried out in the first year of implementation:
• Senior management endorsement of an asset management framework including the AMP.
• Determine the approach to alignment with ISO 55001 and align internal processes with an asset
management system.
• Develop, resource, and begin to implement and monitor the asset management improvement program.
• Review the asset management structure and define the role of the assets manager.
• Set up an asset management leadership team and cross functional asset management teams and
interactions.
• Develop and begin to implement training and culture change initiatives for asset management.
• Produce 1st generation strategic asset management strategy (SAMP) and AMPs.
• Align financial management processes and budget structures with asset management.
7.2 Stage Two – Develop Best Practice Asset Management
The following actions would typically be carried out during the first 3–4 years of implementation once good
progress has been made in Stage One:
• Document the asset hierarchy and asset knowledge base in a suitable information systems environment.
• Carry out condition assessments and establish future condition assessment cycles.
• Carry out capacity and future demand analysis.
• Identify critical assets, undertake risk assessment for asset portfolios, and establish the process for
regular review.
• Implement procedures for integrated planning of asset maintenance, capital renewals and new capital
investments, linked to performance and risk.

• Integrate asset management with financial planning processes, linked to whole of life-cycle decision
making, asset valuation and the economic consumption of assets.
• Develop advanced asset management optimisation analysis and integrated decision-making processes
and tools, and implement processes to develop multi-year work programs and budgets.
• Update condition data for critical assets and undertake predictive modelling on critical assets where
condition deterioration is closely correlated to increasing risk of asset and service failure and future
maintenance costs are likely to be significant.
• Update SAMP and AMPs on a regular basis (annual initially) and link AMPs to budget planning.
• Systems integration with asset management, including GIS, financial and customer service.
• Continue with internal training and culture initiatives to maintain momentum.
• Review organisation structure and service delivery arrangements on a regular basis.
7.3 Stage Three – Consolidate and Review
The following actions would typically be carried out on an ongoing basis once the elements of best practice
have been established:
• Carry out external benchmarking to assess how asset management practices compare to other road
agencies in other parts of the world.
• Refine internal training and culture initiatives to maintain momentum.
• Refine use of advanced decision-making tools in developing multi-year programs and supporting
advanced AMPs.
• Enhance asset management information systems integration.
• Review and update asset management processes and practices on a regular basis (gap analysis).
• Review and update core asset management documents on a regular basis.

References
American Association of State Highway Officials 2011a, Transportation asset management: volume 1,
AASHTO, Washington, DC, USA.
American Association of State Highway Officials 2011b, Transportation asset management: volume 2,
AASHTO, Washington, DC, USA.
Austroads 2007, Guide to project delivery: part 2: project delivery planning and control, AGPD02-07,
Austroads, Sydney, NSW.
Austroads 2009, Guide to asset management: part 4: program development and implementation,
AGAM04-09, Austroads, Sydney, NSW.
Austroads 2014a, Guide to project delivery: part 1: overview, 3rd edn, AGPD01-14, Austroads, Sydney,
NSW.
Austroads 2014b, Guide to project delivery: part 3 contract management, 2nd edn, AGPD03-14, Austroads,
Sydney, NSW.
Austroads 2014c, Guide to project delivery: part 4: direct management of project works, 2nd edn,
AGPD04-14, Austroads, Sydney, NSW.
Boswell, W & Boudreau, JW 2001, ‘Employee line of sight to the organisation’s strategic objectives: what it
is, how it can be enhanced and what makes it happen’, Management Decision, vol. 39, no. 10.
Global Forum on Maintenance and Asset Management 2014, The asset management landscape, 2nd edn,
GFMAM, Zurich, Switzerland.
Institute of Asset Management 2014a, An anatomy of asset management, version 2, IAM, London, UK.
Institute of Asset Management 2014b, The IAM competences framework, Part 1 and Part 2, IAM, London,
UK.
Institute of Asset Management 2015, Self-assessment methodology plus, version 2, IAM, London, UK.
Institute of Asset Management 2017, What is PAS55?, webpage, AIM, viewed 10 July 2017,
<https://theiam.org/products-and-services/pas-55/what-pas55>.
Institute of Public Works Engineering Australia 2015, IIMM: international infrastructure management manual,
5th edn, IPWEA, Sydney, NSW.
NZ Transport Agency 2014, State highway procurement strategy, version 2.1, NZTA, Wellington, NZ, viewed
10 July 2017, <https://www.nzta.govt.nz/resources/state-highway-portfolio-procurement-strategy/>.
New Zealand Office of the Auditor General 2014, Water and roads: funding and management challenges.
Robinson, R, Danielsson, U & Snaith, MS 1998, Road maintenance management: concepts and systems,
Macmillan Press Ltd, London, UK.
Transport and Infrastructure Council 2014, Infrastructure benchmarking report, TIC, Canberra, ACT, viewed
10 July 2017,
<htpp://transportinfrastructurecouncil.gov.au/publications/files/Infrastructure_Benchmarking_Report.pdf/>.
Standards
ISO 31000:2009, Risk management: principles and guidelines.
ISO 55000:2014, Asset management: overview, principles and terminology.
ISO 55001:2014, Asset management: management systems: requirements.
ISO 55002:2014, Asset Management: management systems: guidelines for the application of ISO 55001.
ISO 9001:2015, Quality management systems: requirements.

ISO 14001:2015, Environmental management system: requirements with guidance for use.
AS/NZS 4801:2001, Occupational health and safety management systems: specification with guidance for
use.

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Guide to Asset Management - Processes

Part 10: Implementation and Improvement

• Roads and Maritime Services New South Wales

© Austroads Ltd 2018

2. Roles and Responsibilities .................................................................................................................... 3

3. Asset Management Plans (AMPs) ....................................................................................................... 16

4. Service Delivery Models ...................................................................................................................... 20

5. Asset Management Status Assessment ............................................................................................ 24

6. Continuous Improvement .................................................................................................................... 38

Austroads 2018 | page i

6.7 Other Management Systems .................................................................................................................. 44

7. Example of Approach to Implementation .......................................................................................... 47

Austroads 2018 | page ii

Asset management implementation should be seen as an agency-wide process of continuous improvement

Figure 1.1: Asset management implementation within an organisation

Austroads 2018 | page 1

Note: AM = asset management.

Austroads 2018 | page 2

2. Roles and Responsibilities

2.1 Asset Management Roles

The role of asset managers in integrating organisational decision-making encompasses:

2.1.1 Key responsibilities

Austroads 2018 | page 3

Table 2.1: Road agency management functions and responsibilities

Management function Typical responsibilities Roles involved

Source: Adapted from Robinson, Danielsson and Snaith (1998).

Austroads 2018 | page 4

2.1.2 Centralised or decentralised

Figure 2.1: Centralised asset management function structure

Source: Derived from IPWEA (2015).

Typical advantages of a centralised approach are that it provides:

Typical disadvantages of a centralised approach are that:

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In a decentralised approach, these advantages and disadvantages tend to be reversed. Adopting a

Hierarchical level or influence within the organisation

2.2 Asset Management Leadership

2.2.1 Senior management

Asset management leadership

2.2.2 The asset manager

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2.3 Asset Management Structure

2.3.1 Approaches to structuring asset management teams

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2.3.2 Cross-functional asset management teams

Figure 2.2: Cross-functional asset management structure

Source: Derived from IPWEA (2015).

2.3.3 Types of teams

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Figure 2.3: High level organisational structure

Source: Derived from IPWEA (2015).

Refer also to ISO 55002:2014 for further guidance.

2.4 Asset Management Coordination and Communication

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2.5 Asset Management Competence and Capability

2.5.1 Determine competency requirements

Figure 2.4: Asset management competences framework

Source: Institute of Asset Management (IAM) (2014a).

Each of the roles in this diagram are summarised in Table 2.2.

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Table 2.2: Competences framework content summary

Source: IAM (2014b).

2.5.2 Assessing overall asset management capability

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