2.2.1 What is performance monitoring?

Performance monitoring is the process of monitoring and reviewing the performance of asset management and the performance and/or condition of assets.

The performance framework discussed in section 1.4 creates a top-down connective thread from organizational direction and goals down to individual, day-to-day management activities (PIARC 2004). Similarly, the bottom-up monitoring of performance (asset characteristics, management systems problems, risks and opportunities) should provide the factual basis for adjusting and refining realistic asset management strategies and plans, through a process of continual improvement.

Therefore, the organization should establish, implement, and maintain processes and/or procedure(s) for the following:

• To monitor and measure the performance of asset management and the performance and/or condition of assets and/or asset systems
• To handle and investigate failure, incidents, and non-conformities associated with assets, asset systems, and asset management
• To evaluate the organization compliance with applicable legal and other regulatory or absolute requirements
• To conduct audits of the asset management approach
• To investigate corrective and/or preventive actions
• To assess, prioritize and implement actions
• To review the organization’s asset management system in order to ensure its continuity, suitability, adequacy and effectiveness

This process is not intended to replace audit processes that may already be in place.

The performance monitoring process should cover the following areas (HMEP 2013, CSS & TAG 2004):

Strategic monitoring: To verify that outcomes are being met and asset management has been implemented and documented.

Performance measures and targets: To assess the effectiveness and efficiency of asset management.

System audits: To review and evaluate the effectiveness of asset management retrospectively (e.g., on an annual basis).

Compliance monitoring – To evaluate the organization’s compliance with applicable legal and absolute or regulatory requirements.

Frequency of monitoring should find the right balance between the cost of collecting the monitoring data and information and the risks of not having the information available. Finding the right balance is particularly important when considering compliance with statutory obligations and demonstrating value for money.

It is also important that the benefits from implementing asset management are captured and measured against those identified in the case for investment, or to support value for money initiatives or greater efficiency in delivery of the service. Recording and demonstrating the benefits may provide essential evidence for further investment. Demonstrating benefits is therefore a key success factor in the implementation of asset management and should form part of the monitoring process.