Context of the Organization

Context of the Organization

Asset Management

One of the most important intentions of asset management is to ensure that all tasks for the implementation of systems, methods and techniques are formulated with consideration of the unique environment of the respective organization. The ISO 55000 standard describes this environment as organizational context. One cannot decide on the absolute correctness of a technical solution without knowing this organizational context and without comparing the solution with the external and internal constraints of the organization. Purely “objective” criteria, such as the successful implementations of a system worldwide, are not enough. The organizational context takes into account aspects such as the actual and perceived need for a concrete solution by large parts of the staff, the qualifications and motivations of the employees, the possibility of interaction with existing technical and organizational processes in the organization, the short- and medium-term interest of management in implementing the process and, finally, the maturity of the organization. Failure to implement some technical solutions, such as PMS in some road authorities, is usually due to failure to comply with this fundamental asset management principle.

The ISO 55000 specifies that all external and internal issues that are relevant to the purpose of the organization or that have an impact on the outcome of the asset management system must be considered.

The organization has relationships with external stakeholders and must be guided by internal and external expectations and comply with laws and standards. In addition, the organization’s activities determined by social values and economic and technical conditions. In the ISO 55000 these expectations, interests, requirements and other aspects are referred to as context.

External context

  • external interest groups (stakeholders),
  • laws, requirements and regulations,
  • social concepts / values,
  • nature / environment,
  • other economic and technical conditions.

Internal context

  • existing organizational structures, roles and responsibilities,
  • culture of the organization,
  • processes, standards, models, procedures and instructions of the organization,
  • internal interest groups (stakeholders),
  • management methods already in use,
  • existing information systems,
  • experience (with other management systems),
  • existing agreements.

The external context primarily determines the purpose of the organization. It is also important for defining the organization’s objectives, asset management policy, asset management strategy and all subsequent processes and actions (see figure below).

One of the main objectives of the ISO 55000 is that the management and employees of the organization align the processes, objectives, plans and actions with the organizational objectives derived from the context.

Organization, context and asset management system
Organization, context and asset management system