Indicators are valued highly by managers to measure the progress and completion of action plans in any discipline. Organizations and business schools insist on the need to use dashboards, based on the adage that says, ‘you cannot manage what you cannot measure’. In addition, with the digitization of information, monitoring tools and systems have made possible (and increased demand for) ever more metrics and indicators.
This document reports how we identified a methodology for validating whether an indicator is relevant and specific to Asset Management. This methodology considers the 39 Subjects of Asset Management (reference: The Asset Management Landscape - Second Edition, GFMAM) as well as the 9 Benefits of Asset Management highlighted in ISO55000 (ISO 55000: 2014 Asset management - Overview, principles and terminology, pages 1-2).
The outcome of this work is a validation model to assess the performance of indicators proposed to measure Asset Management actions and projects.
A related follow-on GFMAM project to develop an online tool for Asset Management professionals to evaluate their indicators according to the validation model is now available. Link to access the tool is here: Tool for Evaluating Asset Management Indicators