The Purpose of a Tangible Asset Management Strategy

Unraveling the secret code of Tangible Asset Management—so you don’t have to reinvent the wheel. This newsletter series shares best practices and strategic insights to help you build a resilient, future-ready asset management framework.

What Are Tangible Assets?

Tangible assets are physical items that hold value—ranging from fixed assets like buildings, machinery, and land to current assets such as inventory. These assets form the backbone of your organization’s balance sheet and include Property, Plant, and Equipment (PP&E).

Why a Strategy Matters

A Tangible Asset Management Strategy is a long-term action plan designed to guide the management of infrastructure and plant assets over the next decade. It ensures:

  • Optimal allocation of scarce financial resources
  • Lifecycle-based decisions for maintenance and renewal
  • Alignment with service levels and performance standards

A robust Enterprise Asset Management (EAM) system supports this strategy by improving maintenance processes, training, and operational efficiency.

The Responsibility Matrix

Successful implementation requires collaboration across departments. Here’s how key roles contribute:

Executive Management

  • Set policy, vision, and service standards
  • Approve strategy and long-term plans
  • Ensure funding and resource allocation
  • Promote asset management across the organization

CEO & Directors of Finance & Technical Services

  • Refine and implement overarching asset policies
  • Monitor staff performance and strategy execution
  • Integrate stakeholder input into planning
  • Support multidisciplinary task teams

Heads of Departments

  • Act as asset owners and lead task teams
  • Conduct community consultations
  • Ensure assets are fit for purpose and maintained
  • Report on service levels and recommend upgrades

Asset Management Steering Committee (AMSC)

  • Develop and implement asset plans
  • Consult with communities and report to the Board
  • Manage lifecycle risks and service delivery
  • Maintain and update asset databases

Maintenance Personnel / Service Providers

  • Deliver inspections, maintenance, and upgrades
  • Ensure assets meet defined service levels

Asset Identification & Verification

Accurate asset identification is foundational. Skipping this step undermines every subsequent action. A well-maintained Asset Register helps determine:

  • Asset location and custodianship
  • Maintenance schedules and lifecycle costs
  • Compliance with accounting and regulatory standards
  • Replacement timelines and condition assessments

Physical Asset Verification

Verification confirms that assets listed in the register physically exist and match their specifications. For insurance and operational accuracy, records must align with detailed nameplate data—far beyond just make, model, and serial number.

Asset Register Framework