As asset is an item or an entity that has value, whether potential or actual, to the organisation. Physical assets are usually the biggest focus a business has but assets can be in many forms.

For example, a property developer may see location as a particular asset, as it will increase the value of the proposed development. Someone considering investing in a company may view a person as an asset within that business, if that individual brings value. Perhaps without that person’s involvement, the business would not be worth as much.

Whatever the asset, managing it is paramount to achieving the best possible performance from it. Asset management encompasses balancing the costs, risks and possible opportunities against the performance to achieve the objectives. By making the best possible use of the assets, maximum value for all stakeholders will be achieved.

If assets are managed ineffectively then resources tend to be wasted. Going back to our property development example, if the houses are built without maximising the view, a wasted opportunity has been created, and resources not maximised.

Physical assets are a major part of many businesses; if you run a rail company, your biggest assets are the trains and the tracks; if they are not managed properly your business will begin to slide. By improving the data available on these assets, costs can be cut exponentially, and the value of your asset increases.

Certification is one way to tell your customers how high a regard you place on asset management. If a product is shown to the world to have a certain quality, then your customers are more likely to invest in it.

How to Implement Asset Management

There are several steps to follow to implement a successful asset management plan:

1. Make an inventory of your assets – knowing what are your assets are is the most crucial step, and will help you in the budgeting process.

2. Decide what you want to do with your asset management programme.

3. Ensure the organisation is involved.

4. Develop the asset management plan – this is the blueprint, and acts as a checklist for monitoring the success of your plan. It also allows the whole organisation to be kept in the picture. It should include information on the services that your assets deliver, now and in the future, and why. Also include the condition and performance of your assets, and how you plan to manage these assets within your budget.

5. Invest in tools and techniques to implement your plan – risk management, life cycle management, maintenance planning, preventative maintenance, and asset management systems should all be considered.

Asset management can make or break a business, so if you are unsure how to implement it, ask an expert for advice.

Check out the lisintgs below to find a local company that can help you with asset management.