by Cheri Cross, CPPM, CF
Great Smoky Mountain Chapter
As asset management professionals, how many times have we heard or said statements
such as, “I wish my company recognized the value of what I do,“ or “We don’t get the
respect we deserve,” or even “No one understands what we really do”? Our wishes are
about to come true - we are about to witness the dawn of a new era in asset management. The ISO 55000 Standard series, scheduled for release in early 2014, will shine a spotlight on our world. The following questions and answers provide a summary and status of
ISO 55000, 55001 and 55002, Asset Management.
8 | The Property Professional
| Volume 24, Issue 3
What is the history of the
ISO Asset Management
standard?
The International Organization of
Standardization (ISO) authorized the
development of a standard relating
to asset management in 2010. Project
Committee 251 (PC251) was subsequently
formed to develop the standard. Each
participating country has one vote and
the American National Standards Institute
(ANSI) holds the vote for the USA.
ANSI established a technical advisory
group (TAG) to review documents,
make recommendations, and advise
on pertinent matters. The USTAG was
created and is administered by our longtime partners in standards development,
ASTM. Three international meetings have
occurred in Australia, the United States
and South Africa.
Based on the history of previous ISO
standards and the positive effects on the
companies that implement them, it is a
safe bet that ISO 55000 will follow in the
footsteps of its ISO standard predecessors.
Why will this ISO standard
make a substantial
difference in asset
management?
ISO standards traditionally have
great impact and respect internationally.
They also lead to executive level visibility.
One undisputable example is ISO 9000,
Quality Management. According to
Wikipedia:
Over a million organizations
worldwide are independently
certified, making ISO 9001 one of
the most widely used management
tools in the world today. ...A
number of major purchasers require
their suppliers to hold ISO 9001
certification. In addition to several
stakeholders’ benefits, a number of
studies have identified significant
financial benefits for organizations
certified to ISO 9001, with a 2011
survey from the British Assessment
Bureau showing 44% of their certified
clients had won new business.1
What countries are
participating and
what companies are
represented on the
USTAG?
At last count, there are 26 countries
participating in the development of ISO
55000. Some of the major contributing
countries (other than USA) include
Australia, Canada, Japan, South Africa,
and the United Kingdom. Multiple
delegates from each have attended the
international meetings and have played
a major role in writing the standard
documents.
The list of companies represented
on the USTAG is as impressive as it is
diverse. The names of NPMA members’
companies who have joined the USTAG
reads like the “Who’s Who” in the areas
of federal government, contractors, and
vendors – DoD, GSA, GenDyne, Harris
Corporation, Johns Hopkins Applied
Physics Laboratory, Lockheed Martin,
NASASP, Northrop Grumman, Oak Ridge
National Laboratory, Princeton Plasma
Physics Laboratory, Radley Corporation,
Raytheon, SRA International, and
Sunflower Systems. Incidentally, over 40%
of the USTAG are NPMA members and
NPMA is also a member.
There are many companies that
have joined the USTAG that do not
represent the traditional view of property
management (compliance driven with a
focus on tracking and reporting). These
companies represent the broad view of
asset management and cover areas such as
As an asset
management
professional,
you should be
confident in saying,
“I am familiar with
the ISO 55000
Asset Management
Standard and
I can help this
organization
achieve
certification to
this standard.
www.npma.org | 9
ISO/PC 251 Asset Management in Pretoria, South Africa
maintenance, reliability, risk management, engineering,
etc. The diversity of the USTAG mirrors the reality
that asset management is cross-functional and that a
successful asset management system requires a strong
partnership between these functions.
What is the schedule for the
remaining work and distribution
of ISO 55000?
n
n
n
June 2012 – 4th international meeting, Prague Czech
Republic for the finalization and balloted vote for a draft international standard
July 2012 – February 2014 – ISO processing of draft
international standard which includes solicitation
of comments external to PC251, formatting, trans-
lating, etc.
March 2014 – publication of ISO 55000
ISO 55000, ISO 55001, ISO 55002
– what is the content in these
documents?
The ISO Asset Management Standard series is collectively made-up of three documents. As described in the
design specification for development, the purposes
of these documents are:
n
ISO 55000 Overview, Principles and Terminology –
an overview of the field of asset management, including key concepts, principles and terminology relating to asset management systems
n ISO 55001 Requirements – requirements for the development, maintenance and improvement of a management system for the management of an organization’s assets and also the document that an
organization will follow to be certified to the standard
n ISO 55002 Guidelines – discussion and examples for the requirements listed in the 55001 document
What’s in it for my organization?
ISO 55000 focuses on aligning asset management
with the objectives of your organization and maximizing
the value realized from the assets. Both may improve
effectiveness and efficiency of business performance.
Other benefits are reduced risks of asset failures and
assurance of compliance with asset-related legal,
regulatory and contractual requirements.
Certification to international standards is a
declaration that your organization is doing the right
thing. When people think you are doing the right
thing there is an increase in stakeholder, employee and
customer satisfaction. Certification to international
standards is often required when bidding on contracts or
may provide an advantage over competitors. The bottom
line is that good asset management, and the means to
assure that you are good at it, makes good business sense.
10 | The Property Professional
| Volume 24, Issue 3
What’s in it for me?
ISO 55000 will be to asset management what ISO
9000 is to quality management – an increased awareness
by both our company’s top managers and the public.
As understanding and appreciation for what we do is
realized, we are enabled to perform our responsibilities
as asset management professionals and feel a deeper
sense of satisfaction in the value we provide to our
organization. Being familiar with standards within a
profession also provides individuals “transportable” job
skills and expertise and can result in promotions within
your existing organization or the competitive edge to be
successful when pursuing opportunities with different
organizations. As an asset management professional, you
should be confident in saying, “I am familiar with the
ISO 55000 Asset Management Standard and I can help
this organization achieve certification to this standard.”
According to Rhys Davies, Chairman of PC251, there
is already over-abundance in demand for implementation
consulting and training based on the anticipation of the
ISO 55000 release. The opportunities are going to be
there for those who are prepared to satisfy them.
As asset management professionals,
should we feel obligated to
participate in this effort?
The following excerpt was written by an esteemed
member of the USTAG, Marc LaPlante Senior Solution
Specialist with Meridium. Marc’s analysis of our
professional responsibility really resonated with me.
If we replace the words “USTAG” with “Asset Managers”
the analysis still holds true:
Being at the vanguard of an important standard such
as ISO 55000 carries with it tremendous benefits from
a professional standpoint. Our sponsoring companies
stand to gain from this exercise in many tangible and
intangible ways. For many of us this is a very good
professional stretch exercise which will carry careerenhancing benefits for years to come and our employers
will reap the benefits as well. Along with the benefits
come responsibilities. In the greater scheme of things,
there is more going on than the writing of a standard.
There is a movement that is growing similar to that of the
rise of ERP systems, enterprise risk management, and Six
Sigma. The emerging importance of asset management
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South African Bureau of Standards Building
is being seen every year in industry. Companies are
hiring and placing directors and vice presidents of asset
management – these are new positions that did not exist
before. Regulators are emphasizing and even requiring
asset management systems are in place. Insurance
underwriters are leveraging asset management systems
as a means of better pricing, terms, and conditions with
the insurance carriers. Naturally, vendors and consultants
Still using spreadsheets or
barcodes to track your property?
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have been massing and mobilizing in anticipation of a
potentially lucrative market.
All of this makes it even more important for Asset
Managers to multiply the existing base of knowledge and
intelligence. There are many people writing articles and
selling services around a standard that does not exist yet.
Therefore Asset Managers need to not only contribute to
the development of the standard but also guard against
misinformation and unauthorized use of ISO content.
Who do I contact if I have questions
and want to know more?
Jim Dieter, Chairman and Head of Delegates for the USTAG, jdieter@sunflowersystems.com
n Scott Pepperman, Secretary for the USTAG, nasaspexecdir@aol.com
n Cheri Cross, NPMA Representative for the USTAG, crosscl@ornl.gov n
n
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Biography
Cheri Cross is the Property Manager at Oak Ridge National Laboratory (ORNL) which
is operated by UT-Battelle, LLC for the Department of Energy. She is serving as the
representative for ORNL and NPMA on the USTAG for the development of ISO 55000.
Cheri is a Certified Personal Property Manager and an NPMA Consulting Fellow. She is the
Immediate Past President of NPMA after serving as the National President for 4 years.
In her 33 years of service at ORNL, 21 have been devoted to the improvement of Property
Management. Her accomplishments include the Jack Griffiths Property Person of the Year
Award, Eastern Region Property Person of the Year Award, and multiple literary awards.
Cheri has B. S. in Accounting from the University of Tennessee, graduating Summa Cum
Laude as the top graduate from the College of Business.
Endnotes
ISO 9000. Wikipedia. [Online] http://en.wikipedia.org/wiki/ISO_9000.
1
12 | The Property Professional
| Volume 24, Issue 3