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Begin with the end in mind. The asset management standard ISO 55001 requires that organisations develop asset management objectives consistent with and aligned to organisational objectives. These objectives should be measurable, as should the outputs of activities executed to meet these objectives. Collectively the intention is to create a ‘line of sight’ between activities at the asset level and the organisation’s objectives. Many organisations already have some sort of performance measurement system in place. But does this system really demonstrate a ‘line of sight’? This paper addresses the question how organisations can create a visible link between the organisation’s objectives, the asset management objectives and the asset management activities. The paper draws on performance measurement system literature and practice to identify key factors to be considered in the design of a system to meet the ‘line of sight’ requirements. These are (1) to develop a balance of perspectives (financial, customer service, internal process, talent and teamwork), (2) to have a balance between leading and lagging indicators, (3) to demonstrate relationships between indicators and objectives, and (4) to ensure the set of indicators is responsive to shifts in policy and strategy. The process of developing a performance measurement framework is described using a case study on water assets. The resulting framework comprises of three elements: the development of objectives, the validation of a balanced set of linked performance indicators and integration into a performance dashboard. The framework enables improved communication of the asset management priorities for informed asset investment decisions, well managed risks and increased operational effectiveness. The description includes reflections on organisational issues, like siloed information, technical approach of maintenance staff and constraints of data granularity, that need to be addressed in the development of new approaches to asset performance measurement systems and suggestions to ease the transition.
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