How to Develop and Implement an Asset Management Strategy

An asset management strategy is critical to an organization’s success.

Whether you’re a school district, public university, or government body, a deliberate, holistic strategic asset management guides employees across the organization.

In this post, we will explore the fundamental components of an asset management strategy, what should be included in one, and how software can aid organizations with one.

What is an asset management strategy?

Effective asset management strategies serve as overarching documents that lay the groundwork for asset management plans. These critical frameworks guide the asset lifecycle, from acquisition to disposal. 

This strategy is the centerpiece that defines how an organization will approach long-term asset management, ensuring efficiency, sustainability, and optimal operational performance over time.

What is an asset?

Before diving into asset management strategy, it’s important to define an asset. 

An asset is any physical or digital property owned by an organization—whether public or private—that contributes to its operations. Assets can include physical infrastructure, equipment, software, or intellectual property.

Examples of assets include:

• HVAC systems
• Air conditioning units
• Building appliances
• Fleet vehicles
• IT infrastructure and software

Managing asset strategy helps organizations reduce costs, improve productivity, increase maintenance efficiency, and extend lifespan.

What to include in your asset management strategy

Creating a robust asset strategy management plan requires several key inclusions. Here are the essential components that should be in any comprehensive asset management strategy.

Executive summary

This serves as a brief overview of the asset management strategy and goals. It defines the short-term and long-term strategies and explains why these goals are critical to the organization’s overall success.

For example, a facility’s executive summary might include goals such as:

• Maximizing asset uptime to reduce operational disruptions
• Extending asset lifespan to minimize capital expenditures
• Supporting sustainability initiatives through energy-efficient asset management

Context setting

This section defines how an asset management strategy aligns with organizational goals. It links the asset management approach to the institution’s mission, vision, and core values, allowing managers to align every asset-related decision with the organization’s bigger picture.

Objectives

A well-defined asset management strategy should clearly outline its objectives, both at the strategic and operational levels.

Strategic objectives

• Maximizing asset performance
• Minimizing total lifecycle costs
• Supporting sustainable practices
• Ensuring asset compliance with regulations

Operational objectives

• Reducing asset downtime
• Extending asset lifespan through preventive maintenance
• Increasing asset efficiency and performance
• Optimizing resource allocation for daily operations

Scope

The scope section defines which assets are included in the strategy and the timeframe the strategy will cover. This can include all types of physical and digital assets, from HVAC systems to fleet vehicles and IT infrastructure.

Typically, asset management strategies are planned for 5- to 10-year periods, although this can vary depending on organizational needs and asset lifecycles.

An effective asset management strategy requires input and involvement from various stakeholders across the organization. This includes:

• Facilities managers
• Financial planners
• IT departments
• Senior leadership and executives

Involving these stakeholders ensures that the strategy reflects the needs and priorities of all departments that rely on the organization’s assets.

Asset lifecycle management

An asset management strategy must consider the asset lifecycle, which covers every stage, from acquisition to disposal. A successful strategy defines how an organization manages each stage. This ensures optimal performance and cost-efficiency.

Asset acquisition

Acquisition strategies focus on net new assets. This might include:

• Evaluating the total cost of ownership (TCO) before purchasing
• Aligning acquisitions with long-term business needs
• Prioritizing energy-efficient or sustainable assets

Asset maintenance

Strategy creators must include asset and equipment maintenance processes to ensure assets perform throughout their lifecycle. Leading organizations leverage preventive maintenance and real-time monitoring to minimize downtime and extend asset lifespan.

Asset renewal/replacement

Renewal and replacement strategies define when to renew or replace an asset. This decision is driven by asset age, performance, and overall condition.

Asset disposal

Finally, assets that are no longer useful need to be disposed of in a cost-effective and environmentally responsible manner. This may include recycling, selling, or donating old assets, and following disposal requirements.

Other asset management strategy considerations

A comprehensive asset management strategy incorporates cross-functional perspectives, benchmarking, and monitoring. Leading organizations consider: 

Asset performance management

Performance management is critical to any facility’s asset management strategy. Stakeholders should follow best practices, which include tracking key performance indicators (KPIs) and monitoring assets so they perform as expected.

Common KPIs include asset uptime, maintenance costs, energy efficiency, and lifecycle performance. Leading maintenance departments leverage data analytics and software to track real-time performance and make data-driven decisions.

Risk management

Stakeholders must also build in risk management considerations. Things like equipment failure, safety hazards, and financial risks are part of the strategy framework. 

Employees must identify these risks in the planning phase so they can implement mitigation strategies, backup assets, contingency plans, and preventive maintenance schedules.

Capital planning

A successful strategy requires careful capital planning. This includes an overview of the financial resources available for acquiring new assets, performing maintenance, and paying replacement costs. The capital planning phase aligns with the organization’s financial goals and tracks asset depreciation.

Asset management plan

A key part of your asset management strategy is the implementation plan, which outlines when and how the strategy will be rolled out across the organization.

This section should include:

• Implementation timelines
• Roles and responsibilities 
• Communication plans 

How fixed asset management software aids in asset management strategy

Fixed asset management software helps organizations implement and manage their asset management strategy effectively. Here’s how:

Centralized communication 

Platforms store asset-related data so all stakeholders can update and access it in real-time. This allows organizations to make better decisions and allocate resources more effectively.

Lifecycle management

Leading asset management systems allow for tracking an asset’s lifecycle from acquisition to disposal. These features help leaders schedule preventive maintenance and make renewal/replacement decisions after an asset has exceeded its useful life.

Performance monitoring

Industry-best solutions offer customizable dashboards that allow managers to track KPIs and monitor asset performance in real time, making it easier to adjust strategies based on current data.

Cost reduction

Fixed asset management software helps organizations reduce costs, improve operational efficiency, and extend asset lifespans by tracking asset performance and maintenance costs.

Compliance

Asset managers use software to stay compliant with industry regulations. These features allow managers to track inspection schedules and asset documentation.

Optimization

Data-driven insights help organizations optimize asset allocation, ensuring that resources are used where they are needed most.

FMX and asset management strategies

FMX is an easy-to-use platform. It allows asset managers to develop and implement comprehensive asset management strategies. Users can centralize asset data, monitor lifecycle management, and track KPIs.

These features give asset management professionals the insights they need to make equipment and asset decisions. By utilizing FMX, organizations can maximize the value of their assets, reduce costs, and improve overall operational efficiency.