The IAM (Institute of Asset Management) originally introduced the 6-box model to help organisations understand and implement asset management effectively. Over time, it evolved into the 10-box model to better align with ISO 55000 standards and to cover additional aspects of asset management. Let’s break down the differences and additions between the two models.

6-Box Model Overview

The 6-box model primarily focuses on the core elements of asset management, including strategy, planning, and implementation.

The six key areas in the original model were:

  1. Organisation and People – assesses and develops the organisation’s culture and capabilities for effective Asset Management
  2. Asset Management Strategy & Planning – How the organisation plans to achieve its asset management objectives.
  3. Asset Management Decision Making – includes the decision making tools and processes that enable the organisation to define the optimum blend of activities to implement the Asset Management Plan (AMP)
  4. Lifecycle Delivery – activities undertaken on the assets throughout the life-cycle
  5. Asset Knowledge Enablers – Support structures, such as training and tools, that help the asset management team perform their tasks.
  6. Risk & Review– Identifying, assessing, and mitigating risks associated with assets.

 

Transition to the 10-Box Model

The move to the 10-box model was intended to provide a more comprehensive and structured approach to asset management, reflecting modern best practices and the ISO 55000 series standards. The 10-box model adds more granularity and integrates elements that ensure sustainability, risk management, and continuous improvement.

IAM 10 Box model

New/Expanded Elements in the 10-Box Model:

  1. Purpose and Context
    A recognition that the organisation’s operating environment influences asset management. This includes legal, regulatory, and market conditions, as well as stakeholders’ needs and expectations.
  2. Leadership & Governance
    Emphasises the role of leadership in driving asset management activities, aligning organisational objectives with asset management goals, and ensuring resources are allocated efficiently.
  3. Value and Outcomes
    Defined measurable objectives to align asset management efforts with organisational goals, emphasising how these objectives flow from strategy and support long-term success.
  4. Risk Management versus Review & Continual Improvement
    Formalizes the need for structured decision-making processes, ensuring that asset-related decisions are made based on robust, data-driven methods, considering lifecycle costs and value generation.
  5. Lifecycle Management
    Introduces continuous monitoring and assessment of the asset management system’s performance. It focuses on ongoing improvement, ensuring assets deliver value and risks are mitigated over time.

Comparing the 6-Box and 10-Box Models

Key Additions and Impacts

  • Organisational Context and Leadership emphasise how asset management must align with the broader strategic goals of an organisation.
  • Decision-Making introduces formal processes, ensuring decisions are based on complete life-cycle analysis.
  • Performance Evaluation underscores continuous improvement, promoting ongoing review and adjustment of asset management practices.

The transition to the 10-box model provides a more complete, structured, and standards-compliant framework for managing assets, ensuring better integration of asset management into the organisational context and more effective leadership in asset-related decisions.