During a recent interview, PCA Senior Maintenance and Reliability Consultant Stan Moore discussed the importance of ISO standards and why the C-suite shouldn’t overlook them.  

“When we talk about ISO standards, especially those tied to asset management, finance and insurance leaders often tune out. But they shouldn’t. In fact, those very standards could be the missing link between operational excellence and financial performance. ISO standards are a signpost that indicates the maturity of reliability-based maintenance. They help convey that having high performing assets is repeatable and engineering driven.” said Moore.  

At PCA, we’ve seen time and time again how improving reliability and asset performance does far more than just cut maintenance costs. It also drives production, profitability, and long-term shareholder value. Yet those critical connections are too often lost in quarterly earnings reports and short-term thinking. 

Asset Management Isn’t Just About Maintenance 

ISO 55000 and other asset-management frameworks are typically relegated to engineering and maintenance departments. But their principles — strategic asset planning, lifecycle costing, and risk-based decision-making — speak directly to what CFOs and insurers care about: predictability, performance, and risk mitigation. True asset management is holistic; to be effective, it must include committed leadership and operations, as well as maintenance.  It requires an organizational mindset focused on failure prevention. 

You can improve profits just by improving reliability. “This isn’t theoretical — increasing production efficiency by even 10% in a capital-intensive business can have a huge impact on profits and, by extension, enterprise value,” said Moore.  

The Problem With Short-Term Thinking 

Here’s the rub: CEOs and CFOs are often incentivized based on short-term stock prices. That creates a myopic culture where cost-cutting gets rewarded.  

Moore shared some of the short-sighted mistakes he has witnessed over his 40+ year career. “We’ve seen companies slash maintenance budgets to boost quarterly metrics. Fast forward 6-12 months, and those same companies are often plagued by equipment failures, unplanned downtime, and production shortfalls. It may look good on paper for a while, but it’s not sustainable,” said Moore. 

Effective asset management is a long-term strategy. It takes time to show results, but those results are sustainable and measurable. Unfortunately, many financial decision-makers haven’t yet made the connection between reliability practices and bottom-line outcomes. 

The Value of Doing It Right, Not Just Doing It for Long 

Another barrier is the myth that experience equals expertise. “Just because someone has 30 years in the field doesn’t mean they’ve been doing it right for 30 years. In some cases, they may still not have it all figured out,” said Moore.  

At PCA, we’d rather someone have five years of doing it right versus decades of doing it wrong. In asset management, we value competence, not just tenure. That mindset is precisely what makes ISO standards so valuable. They provide a proven framework -vetted globally – for doing it right. 

In light of this fact, shifting from the tenure to the expertise model can be a catalyst for business continuity and long-term growth. 

Bridging the Gap With Education and Proof 

To shift the prevailing mindset in finance and insurance, we need ongoing education. That means demonstrating the ROI of reliability in terms that resonate with an organization’s money men. 

Playbooks, assessments, and standards are strategic enablers that impact valuation while reducing risk. They can give you a competitive advantage while promoting business continuity. 

It’s time to get finance in the room and show them what asset management can really do.