A guide to ISO 55000: Creating effective asset management

Are you thinking about embarking on the journey towards ISO 55000 certification for your property assets? This comprehensive guide will help you understand the key considerations, overcome potential challenges, and make the best use of available resources to ensure your journey to certification is a success.

What is ISO 55000?

ISO 55000 certification, issued by the International Organization for Standardization (ISO), represents an organization's commitment to implementing and maintaining an effective asset management system (AMS). This global standard offers a structured approach to continual improvement in asset management, taking into account efficiency, performance, and value from the assets.

The certification process requires an organization to establish an asset management policy, set targets in accordance with this policy, make informed decisions based on asset data, measure outcomes, review policy effectiveness, and continually refine its asset management processes.

Acquiring ISO 55000 certification can aid organizations in optimizing the use of their assets, complying with relevant legal and regulatory requirements, enhancing operational efficiency, reducing costs, and improving their overall business performance.

What is the objective of ISO 55000?

The primary objective of the ISO 55000 series is to standardize and optimize the way organizations manage their assets. The goal is to enable organizations to derive the maximum possible value from their assets, whether they are physical items like buildings and equipment, or intangible assets like brand reputation or intellectual property.

What are the components of ISO 55000 certification?

The ISO 55000 family comprises three individual but interconnected standards:

ISO 55000: Overview, principles and terminology for Asset Management

ISO 5500 introduces the concepts and terminology needed to develop a long-term plan that includes a company’s mission, values, objectives, business policies and stakeholder requirements

ISO 55001: Asset Management System - Requirements

ISO 55001 provides a comprehensive framework for establishing, implementing, maintaining, and improving an asset management system. ISO 55001 promotes a systematic and structured approach to managing the lifecycle of assets, from the acquisition, operation, and maintenance to the eventual disposal.

ISO 55002: Asset Management System - Guidelines on the application of ISO 55001

ISO 55002 supports the implementation of the ISO 55001 requirements. It provides further clarification, examples, and guidance on how to implement an asset management system as per ISO 55001. This standard is designed to assist organizations in understanding and applying ISO 55001, offering practical advice on such aspects as how to align asset management objectives with organizational objectives, the role of leadership, and how to integrate asset management into regular organizational operations.

Why is ISO55000 important?

ISO55000 defines assets as any “item, thing, or entity that has potential or actual value to an organization.” Assets can include material assets such as machinery, equipment, property and vehicles as well as intangible assets such as patents, licenses and intellectual property. 

Effective asset management practices require the protection of assets that provide value to your company – in this case, your properties. To effectively manage your property assets, you must develop an ISO 55000 asset management plan, which outlines how your company obtains value from its assets by optimizing performance, risks and costs across the asset life. The plan specifies the activities needed to classify, analyze, control and measure the effectiveness of asset management strategies. By combining organizational goals and structure with process, data, technology and auditing tools, ISO 55000 maintains effective asset operations throughout the business cycle. 

By having a comprehensive ISO 55000 asset management plan, companies can make incremental improvements to their asset management strategies. As a result, companies improve performance, enhance tenant satisfaction, reduce costs and deliver increased value to investors. 

What are the benefits of ISO 55000 certification?

Obtaining ISO 55000 certification provides property owners with numerous benefits, due to its international recognition. Here’s just a few of the potential benefits:

• Improved asset management: The certification creates more structured, transparent and efficient management of assets, based on KPIs and suitable business processes. This helps to extend the lifespan of assets, reduce overall costs, and improve the return on investment.

• Risk management: ISO 55000 certification helps property owners to identify, analyze, and mitigate risks associated with their assets

• Sustainability: The ISO 55000 series provides guidance on incorporating sustainability into asset management. This can help commercial property owners in balancing financial, environmental, and social outcomes.

• Enhanced brand reputation: Being ISO 55000 certified showcases a commitment to best practice asset management. This can improve reputation with stakeholders, investors, and tenants, which in turn can lead to more business opportunities.

• Reduced operating costs: By implementing systematic processes and making informed decisions based on the life cycle of assets, commercial property owners can optimize their utilization and yield greater financial performance

• Easier and more reliable decision making: The certification promotes the use of data and analytics in making informed decisions about assets, from acquisition, through operation, to decommissioning or replacement.

How to get ISO 55000 certification

To achieve ISO 55000 certification, a commercial property owner must develop an asset management system (AMS) that aligns with the ISO 55000 standard. This process involves creating an asset management policy, setting SMART objectives that align with it, conducting an asset review to identify areas for improvement, and prioritizing measures that will maximize asset value.

Next, the organization implements and operates the AMS, monitors its performance, makes necessary corrections, and documents all processes and data. An internal audit and management review are then followed by an independent audit conducted by an external ISO 55000 accredited body. Successful completion results in ISO 55000 certification, confirming the organization's commitment to effective asset management.

Key considerations when attempting to achieve ISO 55000 certification

To gain ISO 55000 certification for a commercial property, you need to consider the following elements:

Asset management policy: A well-articulated policy shows your organization's commitment to continuous improvement in asset management. It should also comply with all relevant legal requirements.

Asset inventory: Identify and document all assets within the property. This inventory serves as the baseline for future improvements.

Asset review: Conduct a systematic review of asset performance based on collected data to identify areas where asset utilization can be improved.

Asset Performance Indicators (APIs): These measure the performance and effectiveness of the asset management system. APIs should be clear and measurable.

Asset objectives and targets: Based on the asset review and APIs, set clear and achievable objectives and targets for improving asset performance.

Training: All relevant personnel should be adequately trained and competent in asset management principles and practices. Employee understanding and involvement are critical to the success of an AMS.

‍Communication: Regularly communicate about the asset management policy, objectives, achievements, and improvements to maintain system sustainability and success.

Monitoring, measurement, analysis, and evaluation: Monitor and measure asset performance regularly, comparing it against the policy, objectives, targets, and action plans.

Internal audit: Regularly audit the AMS internally to ensure it works as intended. Management should also periodically review the system to ensure its suitability, adequacy, and effectiveness.

ISO 55000 resources for getting started

Achieving ISO 55000 certification for commercial properties requires a solid understanding of asset management concepts and a clear roadmap for implementation. Fortunately, various resources can aid property owners and managers:

ISO 55000:2014 Document: The International Organization for Standardization's official document for ISO 55000:2014 is the primary resource to understand the standard. It provides clear guidance on all aspects of setting up an asset management system.

ISO Website: The ISO's official website provides various resources related to ISO 55000, including articles, case studies, and training opportunities.

Government and non-profit organizations: Numerous governments and non-profit organizations provide resources and guidance for asset management. In the US, examples include the National Property Management Association (NPMA). In the UK, the Royal Institution of Chartered Surveyors (RICS) provides similar resources.