Maximizing Asset Value
Real estate companies may initially work with a function-based organizational structure because it is ideal for the asset creation stage, which involves development and construction. During this stage, the company may focus on hiring skilled personnel for specific functions, such as architecture, engineering, and project management, to ensure that the asset is designed and constructed efficiently and effectively. This structure enables the company to leverage specialized expertise and knowledge in each function to create a high-quality asset, thus maximizing asset value
However, once the asset creation stage is completed, the company may shift towards an asset-based structure that focuses on the asset's life cycle. This structure allows the company to maximizing asset value by managing it based on its specific characteristics, such as age, location, and condition, rather than solely based on the functions used to create it. By adopting an asset-based structure, the company can better align its resources and efforts towards managing and optimizing the asset's value throughout its life cycle.
Cross-functional teams can play a vital role in facilitating the transition from a function-based structure to an asset-based structure based on asset life cycle in project-based companies. Here are some ways in which cross-functional teams can support this transition of maximizing asset value:
- Develop a common language and understanding: Cross-functional teams can help break down silos between different departments or functions and establish a common language and understanding of asset life cycle management. By bringing together individuals from different backgrounds, expertise, and perspectives, cross-functional teams can help develop a shared vision and understanding of how to manage assets throughout their life cycle therefore maximizing asset value.
- Define roles and responsibilities: In an asset-based structure, each asset is treated as a separate entity, and its life cycle is managed by a cross-functional team. As such, it is crucial to define clear roles and responsibilities for each team member involved in the asset's life cycle management. Cross-functional teams can work together to define these roles and responsibilities, ensuring that everyone understands their specific contributions and how they fit into the overall asset life cycle management plan to contribute in maximizing asset value.
- Integrate different functions: Cross-functional teams can integrate different functions by ensuring that all aspects of the asset's life cycle are considered, from design and development to maintenance and disposal. By bringing together individuals with different expertise, cross-functional teams can ensure that all perspectives are considered, leading to maximizing asset value and a more comprehensive and well-rounded approach to asset life cycle management.
- Identify and address gaps: As cross-functional teams work together; they may identify gaps in the organization's asset life cycle management approach. These gaps could be related to processes, tools, or expertise. Cross-functional teams can work together to identify these gaps and develop strategies to address them, ensuring that the organization has the resources and expertise needed to effectively manage assets throughout their life cycle and hence helping maximizing asset value.
- Foster a culture of collaboration: Cross-functional teams can foster a culture of collaboration by bringing together individuals from different departments or functions and encouraging them to work together towards a shared goal. By working together, cross-functional teams can break down silos, increase communication and collaboration, and foster a more collaborative and innovative culture within the organization.
In summary, cross-functional teams can play a critical role in facilitating the transition from a function-based structure to an asset-based structure based on asset life cycle management. By developing a common language and understanding, defining roles and responsibilities, integrating different functions, identifying, and addressing gaps, and fostering a culture of collaboration, cross-functional teams can help ensure that the organization effectively manages assets throughout their life cycle to maximizing asset value.
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About the Author
Arun Panangatt, is a growth hacker and thought leader. He trys to help organizations and people find a purpose. He is father of an Autistic son and husband of a loving wife.
He talks about #innovation, #negotiations, #pricingoptimization, #realestatedevelopment, and #strategicpartnerships. He can be contacted on Linkedin, if you are excited to get in touch with him.
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