--- title: A recipe for good asset management decisions – Part 1 description: The first ingredient needed to make a good asset management decision is a sound and clear objective. A straightforward way to determine it consists of thinking about the needs of the people who pay fo --- [![Indigo by AWA logo](https://www.awa.asn.au/hs-fs/hubfs/AWA-Website/Logos/Indigo_colour.png?height=24&name=Indigo_colour.png)](https://indigo.awa.asn.au/) [![Ozwater logo](https://www.awa.asn.au/hs-fs/hubfs/AWA-Website/Logos/Ozwater.png?height=24&name=Ozwater.png)](https://www.ozwater.org/) [![Careers in Water logo](https://www.awa.asn.au/hs-fs/hubfs/AWA-Website/Logos/Careers%20in%20Water_colour.png?height=24&name=Careers%20in%20Water_colour.png)](https://www.careersinwater.com.au/) [![NWW logo](https://www.awa.asn.au/hs-fs/hubfs/AWA-Website/Logos/NWW.png?height=24&name=NWW.png)](https://www.nationalwaterweek.org/) - [Join ![user icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-nav-user-icon.svg "user icon")](https://www.awa.asn.au/new-registration) - [Member Hub ![user icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-nav-locked-icon.svg "user icon")](https://memberhub.awa.asn.au) - [About us ![about us icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-nav-about-us-icon-copy.svg "about us icon")](https://www.awa.asn.au/about) - [Contact us ![contact icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-nav-contact-icon.svg "contact icon")](https://www.awa.asn.au/contact-us) [Skip to content](https://www.awa.asn.au/resources/latest-news/business/assets-and-operations/a-recipe-for-good-asset-management-decisions-part-1#main-content) [![Australian Water Association | 60 Years](https://www.awa.asn.au/hs-fs/hubfs/images/logos/AWA-logo@2x.png?width=180&height=85&name=AWA-logo@2x.png "Australian Water Association | 60 Years")](https://awa.asn.au) - [ Home ](https://www.awa.asn.au) - [ Membership ](https://www.awa.asn.au/membership) Show submenu for Membership ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-plus-icon.svg) ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-minus-icon.svg) - [ Membership for me ](https://www.awa.asn.au/membership/individual) Show submenu for Membership for me ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-plus-icon.svg) ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-minus-icon.svg) --- - [ Branch committees ](https://www.awa.asn.au/local-branch) - [ Specialist Networks ](https://www.awa.asn.au/membership-specialist-water-networks) - [ Young Water Professionals ](https://www.awa.asn.au/young-water-professionals) - [ Membership for my organisation ](https://www.awa.asn.au/membership/corporate) Show submenu for Membership for my organisation ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-plus-icon.svg) ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-minus-icon.svg) --- - [ B2B ](https://www.awa.asn.au/business-connections) - [ Australian Water Directory ](https://www.awa.asn.au/digital-marketplace) - [ Careers in Water ](https://www.careersinwater.com.au) Show submenu for Careers in Water ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-plus-icon.svg) ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-minus-icon.svg) - [ Jobs Board ](https://www.careersinwater.com.au/jobs) - [ Resources ](https://www.awa.asn.au/resources) Show submenu for Resources ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-plus-icon.svg) ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-minus-icon.svg) - [ Indigo ](https://indigo.awa.asn.au/) - [ Latest Industry News ](https://www.awa.asn.au/resources/latest-news) - [ Strategy 2030 ](https://www.awa.asn.au/strategy-2030) - [ Current Magazine ](https://www.awa.asn.au/member-magazine) - [ Water e-Journal ](https://www.awa.asn.au/resources/water-e-journal) - [ Reconciliation Action Plan ](https://www.awa.asn.au/resources/reconciliation-action-plan) - [ Future of Water Report ](https://www.awa.asn.au/resources/futureofwaterreport) - [ Podcasts ](https://www.awa.asn.au/podcasts) - [ Advertising & Media ](https://www.awa.asn.au/resources/media-releases) - [ Past Papers ](https://www.ozwater.org/program/past-papers) - [ Events ](https://www.awa.asn.au/upcoming-events) Show submenu for Events ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-plus-icon.svg) ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-minus-icon.svg) - [ Upcoming Events ](https://www.awa.asn.au/upcoming-events) - [ Events Calendar ](https://www.awa.asn.au/national-events-calendar) - [ Ozwater ](https://www.awa.asn.au/events/ozwater) - [ Photo Gallery ](https://www.flickr.com/photos/133291504@N03/albums) - [ Awards ](https://www.awa.asn.au/awards) Show submenu for Awards ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-plus-icon.svg) ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-minus-icon.svg) - [ Awards Overview ](https://www.awa.asn.au/awards) - [ Individual Awards ](https://www.awa.asn.au/awards-individual) - [ Chris Davis AM Fellowship ](https://www.awa.asn.au/chris-davis-am-fellowship) - [ Guy Parker Award ](https://www.awa.asn.au/guy-parker-award) - [ Organisation Awards ](https://www.awa.asn.au/awards-organisation) - [ Student Awards ](https://www.awa.asn.au/student-awards) - [ Australian Stockholm Junior Water Prize ](https://www.awa.asn.au/awards/student-awards/asjwp) - [ View Honour Roll ](https://www.awa.asn.au/awards-honour-roll) - [ Programs ](https://www.awa.asn.au/programs) Show submenu for Programs ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-plus-icon.svg) ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-minus-icon.svg) - [ International Program ](https://www.awa.asn.au/programs/international) - [ Advocacy ](https://www.awa.asn.au/advocacy) - [ Mentoring ](https://www.awa.asn.au/programs/mentoring) - [ Graduate Program - Water ](https://www.awa.asn.au/program/graduate-program-water) - [ National Water Week ](https://www.nationalwaterweek.org) - [ Circular Water Taskforce ](https://www.awa.asn.au/program/circular-water-taskforce) - [ ANZBP ](https://www.biosolids.com.au/) - [ Home ](https://www.awa.asn.au) - [ Membership ](https://www.awa.asn.au/membership) Show submenu for Membership ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-plus-icon.svg) ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-minus-icon.svg) - [ Membership for me ](https://www.awa.asn.au/membership/individual) Show submenu for Membership for me ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-plus-icon.svg) ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-minus-icon.svg) --- - [ Branch committees ](https://www.awa.asn.au/local-branch) - [ Specialist Networks ](https://www.awa.asn.au/membership-specialist-water-networks) - [ Young Water Professionals ](https://www.awa.asn.au/young-water-professionals) - [ Membership for my organisation ](https://www.awa.asn.au/membership/corporate) Show submenu for Membership for my organisation ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-plus-icon.svg) ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-minus-icon.svg) --- - [ B2B ](https://www.awa.asn.au/business-connections) - [ Australian Water Directory ](https://www.awa.asn.au/digital-marketplace) - [ Careers in Water ](https://www.careersinwater.com.au) Show submenu for Careers in Water ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-plus-icon.svg) ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-minus-icon.svg) - [ Jobs Board ](https://www.careersinwater.com.au/jobs) - [ Resources ](https://www.awa.asn.au/resources) Show submenu for Resources ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-plus-icon.svg) ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-minus-icon.svg) - [ Indigo ](https://indigo.awa.asn.au/) - [ Latest Industry News ](https://www.awa.asn.au/resources/latest-news) - [ Strategy 2030 ](https://www.awa.asn.au/strategy-2030) - [ Current Magazine ](https://www.awa.asn.au/member-magazine) - [ Water e-Journal ](https://www.awa.asn.au/resources/water-e-journal) - [ Reconciliation Action Plan ](https://www.awa.asn.au/resources/reconciliation-action-plan) - [ Future of Water Report ](https://www.awa.asn.au/resources/futureofwaterreport) - [ Podcasts ](https://www.awa.asn.au/podcasts) - [ Advertising & Media ](https://www.awa.asn.au/resources/media-releases) - [ Past Papers ](https://www.ozwater.org/program/past-papers) - [ Events ](https://www.awa.asn.au/upcoming-events) Show submenu for Events ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-plus-icon.svg) ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-minus-icon.svg) - [ Upcoming Events ](https://www.awa.asn.au/upcoming-events) - [ Events Calendar ](https://www.awa.asn.au/national-events-calendar) - [ Ozwater ](https://www.awa.asn.au/events/ozwater) - [ Photo Gallery ](https://www.flickr.com/photos/133291504@N03/albums) - [ Awards ](https://www.awa.asn.au/awards) Show submenu for Awards ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-plus-icon.svg) ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-minus-icon.svg) - [ Awards Overview ](https://www.awa.asn.au/awards) - [ Individual Awards ](https://www.awa.asn.au/awards-individual) - [ Chris Davis AM Fellowship ](https://www.awa.asn.au/chris-davis-am-fellowship) - [ Guy Parker Award ](https://www.awa.asn.au/guy-parker-award) - [ Organisation Awards ](https://www.awa.asn.au/awards-organisation) - [ Student Awards ](https://www.awa.asn.au/student-awards) - [ Australian Stockholm Junior Water Prize ](https://www.awa.asn.au/awards/student-awards/asjwp) - [ View Honour Roll ](https://www.awa.asn.au/awards-honour-roll) - [ Programs ](https://www.awa.asn.au/programs) Show submenu for Programs ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-plus-icon.svg) ![Plus icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-menu-minus-icon.svg) - [ International Program ](https://www.awa.asn.au/programs/international) - [ Advocacy ](https://www.awa.asn.au/advocacy) - [ Mentoring ](https://www.awa.asn.au/programs/mentoring) - [ Graduate Program - Water ](https://www.awa.asn.au/program/graduate-program-water) - [ National Water Week ](https://www.nationalwaterweek.org) - [ Circular Water Taskforce ](https://www.awa.asn.au/program/circular-water-taskforce) - [ ANZBP ](https://www.biosolids.com.au/) ![](https://www.awa.asn.au/hubfs/website-assets-2021/icons/icon-nav-hamburger.svg) ![](https://www.awa.asn.au/hubfs/website-assets-2021/icons/icon-nav-close.svg) [Resources ](https://www.awa.asn.au/resources) > [Latest News ](https://www.awa.asn.au/resources/latest-news) > A recipe for good asset management decisions part 1 # A recipe for good asset management decisions – Part 1 Nov 4, 2019 | 2 mins read ![User Icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/icon-user.svg "User Icon") by Zoubir Ait Mansour, Marion Derochet and Norbert Schaeper ##### This is the first in a series of posts from the AWA's Asset Management Specialist Network. Imagine if you received your water bill from your utility with, just under the total amount due, the following detailed cost breakdown: - Water Variable Usage Charges - Water Fixed Access Charges - **Sub-Optimal Asset Management Decision Charges** Inconvenient truth? # Part One: A sound and clear objective *If you don't know where you're going, you might not get there*. Yogi Berra. The first ingredient needed to make a good asset management decision is **a sound and clear objective**. A straightforward way to determine it consists of thinking about the needs of the people who pay for our work. Let us introduce you to Bill, a fictional representative of the water and wastewater bill and tax payers. Anybody working in the municipal water industry works for Bill. He is our ultimate boss. Bill's needs are simple. He wants drinking water to magically appear from the tap and wastewater to magically disappear without impacting the environment and, of course, at the lowest cost. Water and wastewater services are so fundamental to Bill’s life that he rightly feels entitled to them and, just as with air, they must always be there, and if they're not free they're probably too expensive. “**Meet demand and compliance with a tolerable risk at lowest total cost**” could be the sound and clear objective needed to make good asset management decisions. In line with the lean philosophy, any asset management resource spent on something not contributing to this objective, even indirectly, is somewhat equivalent to charging Bill for something he doesn’t need. What if an asset management decision was all about “buying” capacity, compliance, risk mitigation and cost efficiency? Asset management decision making is part of an asset management system. Both the system and the objectives are specific to an organisation. Even if demand, compliance, risks and costs are always part of the equation, sound decisions should reflect the organisation’s specific objectives and priorities. If you google the words “asset manager”, most of the results would relate to financial investment services. But what could appear at first glance as a confusion between two totally unrelated fields sharing a common designation (physical assets vs financial assets) might make sense at a deeper level. Asset managers dealing with physical assets in the water industry can and probably should consider themselves as investors, making asset management decisions on behalf of Bill, using his money and at his risk. Within that framework, asset management decision making is about investing resources (ultimately Bill’s money) in a way that maximises the value for Bill. Whether we’re considering a new asset, an asset renewal, an asset improvement, periodic or condition-based preventative maintenance, or a critical spare part, the logic is the same: identifying all the available options that meet demand, compliance and risk tolerance, and choosing the one with the lowest total cost. If you have any questions about the Asset Management Decision Series, please contact [Zoubir Ait Mansour, ](mailto:zoubir.ait.mansour@suez.com)[Marion Derochet](mailto:marion.derochet@aecom.com) or [Norbert Schaeper](mailto:norbert.schaeper@sydneywater.com.au). *This article was written on behalf of the AWA’s Asset Management Specialist Network.* [ Asset Management ](https://www.awa.asn.au/resources/latest-news/tag/asset-management) [ Assets & Operations ](https://www.awa.asn.au/resources/latest-news/tag/assets-and-operations) [ Asset Management Specialist Network ](https://www.awa.asn.au/resources/latest-news/tag/asset-management-specialist-network) [ Water Bills ](https://www.awa.asn.au/resources/latest-news/tag/water-bills) Share [![email icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/icon-dark-sandstone-email.svg "email icon") ](mailto:?subject=A%20recipe%20for%20good%20asset%20management%20decisions%20–%20Part%201&body=Check%20out%20https://www.awa.asn.au/resources/latest-news/business/assets-and-operations/a-recipe-for-good-asset-management-decisions-part-1) [![facebook-icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/icon-dark-sandstone-facebook.svg "facebook icon") ](https://www.facebook.com/sharer/sharer.php?u=https://www.awa.asn.au/resources/latest-news/business/assets-and-operations/a-recipe-for-good-asset-management-decisions-part-1) [![LinkedIn icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/icon-dark-sandstone-linkedin.svg "LinkedIn icon") ](https://www.linkedin.com/shareArticle?mini=true&url=https://www.awa.asn.au/resources/latest-news/business/assets-and-operations/a-recipe-for-good-asset-management-decisions-part-1) [![Twitter icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/icon-dark-sandstone-twitter.svg "Twitter icon") ](https://twitter.com/home?status=https://www.awa.asn.au/resources/latest-news/business/assets-and-operations/a-recipe-for-good-asset-management-decisions-part-1) ## RELATED NEWS ### [ A recipe for good asset management decisions – Part 3 ](https://www.awa.asn.au/resources/latest-news/business/assets-and-operations/a-recipe-for-good-asset-management-decisions-part-3) Zoubir Ait Mansour, Marion Derochet and Norbert Schaeper This is the third in a series of posts from the AWA’s Asset Management Specialist Network. Imagine if you received your water bill… [ Read Full Paper ](https://www.awa.asn.au/resources/latest-news/business/assets-and-operations/a-recipe-for-good-asset-management-decisions-part-3) ### [ A recipe for good asset management decisions – Part 4 ](https://www.awa.asn.au/resources/latest-news/business/assets-and-operations/a-recipe-for-good-asset-management-decisions-part-4) Zoubir Ait Mansour, Marion Derochet and Norbert Schaeper This is the fourth in a series of posts from the AWA’s Asset Management Specialist Network. Read part one, part two and part three.… [ Read Full Paper ](https://www.awa.asn.au/resources/latest-news/business/assets-and-operations/a-recipe-for-good-asset-management-decisions-part-4) ### [ A recipe for good asset management decisions – Part 5 ](https://www.awa.asn.au/resources/latest-news/business/assets-and-operations/a-recipe-for-good-asset-management-decisions-part-5) Water Source This is the fifth in a series of posts from the AWA’s Asset Management Specialist Network. Read part one, part two, part three and… [ Read Full Paper ](https://www.awa.asn.au/resources/latest-news/business/assets-and-operations/a-recipe-for-good-asset-management-decisions-part-5) Advertising --- ### Subscribe to our newsletters Sign up to get the latest news and insights from us Advertising --- ![white arrow pointing upwards](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-white-arrow-up.svg) Top [![Footer-logo-02](https://www.awa.asn.au/hubfs/Footer-logo-02.svg) ](https://www.awa.asn.au/) The **Australian Water Association** acknowledges the Traditional Custodians across Australia, where we live, work and play, for their deep connection to our precious waters and land. We pay our respects to Elders past and present, and the ancestors who have cared, protected and nurtured Country for many thousands of years.   Aboriginal and Torres Strait Islander people should be aware that this website may contain images, voices, and names of people who have passed away. Please [let us know ](mailto:membership@awa.asn.au)if anything on the site causes distress. - [About us](https://www.awa.asn.au/about) - [International](https://www.awa.asn.au/programs/international) - [Principal Members](https://www.awa.asn.au/membership) - [Resources](https://www.awa.asn.au/resources) - [Jobs Board](https://www.careersinwater.com.au/jobs) Branches [ ACT ](https://awa-asn-14568786-hs-sites-com.sandbox.hs-sites.com/local-branch/act) [ NSW ](https://awa-asn-14568786-hs-sites-com.sandbox.hs-sites.com/local-branch/nsw) [ NT ](https://awa-asn-14568786-hs-sites-com.sandbox.hs-sites.com/local-branch/nt) [ QLD ](https://awa-asn-14568786-hs-sites-com.sandbox.hs-sites.com/local-branch/qld) [ SA ](https://awa-asn-14568786-hs-sites-com.sandbox.hs-sites.com/local-branch/sa) [ TAS ](https://awa-asn-14568786-hs-sites-com.sandbox.hs-sites.com/local-branch/tas) [ VIC ](https://awa-asn-14568786-hs-sites-com.sandbox.hs-sites.com/local-branch/vic) [ WA ](https://awa-asn-14568786-hs-sites-com.sandbox.hs-sites.com/local-branch/wa) [ IWAA ](https://awa-asn-14568786-hs-sites-com.sandbox.hs-sites.com/local-branch/iwaa) Subscribe to our newsletter Follow us [![nav-icon-facebook](https://www.awa.asn.au/hubfs/website-assets-2021/icons/nav-icon-facebook.svg) ](https://www.facebook.com/australianwater) [![nav-icon-instagram](https://www.awa.asn.au/hubfs/website-assets-2021/icons/nav-icon-instagram.svg) ](https://www.instagram.com/australianwaterassociation/) [![nav-icon-youtube](https://www.awa.asn.au/hubfs/website-assets-2021/icons/nav-icon-youtube.svg) ](https://www.youtube.com/c/australianwaterTV) [![nav-icon-twitter](https://www.awa.asn.au/hubfs/website-assets-2021/icons/nav-icon-twitter.svg) ](https://twitter.com/AustralianWater) [![nav-icon-linkedin](https://www.awa.asn.au/hubfs/website-assets-2021/icons/nav-icon-linkedin.svg) ](https://au.linkedin.com/company/australian-water-association) [![nav-icon-flickr](https://www.awa.asn.au/hubfs/website-assets-2021/icons/nav-icon-flickr.svg) ](https://www.flickr.com/photos/133291504@N03/albums) Australian Water Association PO Box 841, Chatswood NSW 2057 Phone [ + 61 2 9436 0055 ](tel:+%2061%202%209436%200055) ABN: 78 096 035 773 [ Contact us ](https://www.awa.asn.au/contact-us) Copyright 2025 - Australian Water Association - [ Terms of Use ](https://www.awa.asn.au/terms-of-use) | [ Privacy ](https://www.awa.asn.au/privacy-policy) | Sitemap